CoinVoice has recently learned that, according to The Block, Circle announced an increase in the exchange fees for its USDC stablecoin. This move is aimed at addressing the decrease in cash reserve yields for stablecoin operators due to the Federal Reserve lowering interest rates.
Circle currently charges fees for USDC exchanges exceeding $15 million, and additional fees for fast redemptions exceeding $2 million daily. These fees start at 0.03% per transaction and can go up to 0.1%. This fee adjustment is being made in the context of the company preparing for an IPO.
In the increasingly competitive stablecoin market, despite Tether holding a dominant market share of over 70%, Circle still faces competitive pressure from smaller and more agile startups. [Original link]