⚡ Fast USDC Cash-Outs Now Cost More
posted 30 Oct 2024
Circle has updated its terms for instant USDC cash-outs on the Circle Mint platform, raising fees and lowering the threshold for fee-free transactions. Now, daily redemptions exceeding $2 million incur a 0.03% fee, while amounts over $15 million are subject to a 0.1% fee.
This special fee for transactions above $15 million was first introduced in February 2024. Before this, Circle allowed free, unlimited redemptions. However, users can still avoid fees on any amount by opting for up to two days for transaction processing.
Circle Mint redemption options support the availability of instant liquidity globally — similar to banks and other financial institutions that charge for speed and servicenoted a Circle representative.
The increased fees have disappointed many high-net-worth clients, as the added cost cuts into trading profits. For instance, withdrawing $1 million now incurs a $1,000 fee, significantly reducing returns, especially with frequent transactions.
Service fees have become an essential tool for attracting clients. Circle’s main competitor, Tether, which controls over 70% of the stablecoin market, also charges a 0.1% fee but from $100,000 upwards. This fee structure could offer Circle a competitive edge.
Circle is also gearing up for an IPO. In the secondary market, the company’s current valuation stands at $4.5 billion, down from $7.7 billion in 2022, when it received a $400 million investment from BlackRock and other major investors.
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