Circle's $461M Payout Shows Who Captures USDC Yield — and It's Not Circle

Circle's fourth quarter earnings indicate growth: USDC circulation rose 72% year-over-year to $75.3 billion. Reserve income increased 69% and adjusted EBITDA quintupled. However, the income statement reveals a different structure. The issuer generates yield and immediately bargains most of it away to the platforms that control access to users. The figures are clear. Circle earned $733.4 million in reserve income during the quarter. Distribution and transaction costs consumed $460.6 million of that amount. This is about 63 cents of every dollar earned from investing customer deposits. Total revenue and reserve income reached $770.2 million. Distribution costs accounted for nearly 60% of all earnings. Circle kept what remained after paying the gatekeepers. This is not hidden in footnotes. Circle highlights “Revenue Less Distribution Costs” as a key performance metric. It publishes RLDC margins alongside earnings and net income every quarter. The message is clear: yield exists, but capturing it requires paying for shelf space. The stablecoin business is structured as a negotiation. Issuers deal with exchanges, wallets, and fintech rails. These entities control where the balances sit. Circle's Q4 2025 waterfall chart shows $733.4 million reserve income reduced by $460.6 million in distribution costs. The issuer kept $272.8 million as net reserve income. We must examine who actually receives the yield.