Circle: Due to the Federal Reserve lowering interest rates, the exchange fees for USDC stablecoin will increase

2024-10-30 08:52:51

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ChainCatcher news, according to The Block, Circle has announced an increase in the redemption fees for its USDC stablecoin. This move is aimed at addressing the changes resulting from the Federal Reserve's interest rate cuts, which have reduced the cash reserve yields for stablecoin operators.

Circle currently charges fees on USDC redemptions exceeding $15 million and imposes additional fees on rapid redemptions over $2 million per day. These fees start at 0.03% per transaction and can go up to 0.1%. This fee adjustment comes in the context of the company preparing for an IPO.

In an increasingly competitive stablecoin market, despite Tether dominating with over 70% market share, Circle still faces competitive pressure from smaller and more agile startups.

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