Circle scraps redemption overage fees, sets express fee at 5 basis points
Key Facts
Circle announced the elimination of net redemption overage fees for USDC and EURC as part of changes to its redemption structure taking effect on or after 19 October 2026, according to the company's official service page. The company set the express redemption tier fee at 5 basis points on gross redemptions, before any offsetting credits customers may qualify for. Existing customers will move to the updated structure at the start of their next billing cycle. Circle said the review aims to "simplify our fees and eliminate net redemption overage fees." It added that the changes also aim to maintain fast, reliable access to fiat currencies when redeeming the 2 stablecoins.
The service overhaul includes eliminating the former standard tier, according to the redemption structure details published by Circle. The associated daily gross redemption limit of $10 million is also being removed. The former basic tier has been renamed the standard tier, while the institutional tier has been renamed the express redemption tier. For historical comparison, Circle's IPO prospectus included a redemption fee of 0.1% on amounts exceeding $15 million in USDC or €15 million in EURC. That pricing dates to the structure outlined in the prospectus filed with the U.S. Securities and Exchange Commission at the time.
According to Circle, the standard tier remains available without redemption fees charged by the company. Requests under this tier take 2 business days to process from acceptance of a complete request, followed by bank settlement. For express-tier requests, the company describes processing as "near-instant, plus bank settlement time." Funds reaching a bank account therefore remain subject to settlement time even when the express processing route is used. The company exempts activity conducted through Circle Payments Network from express redemption tier fees, according to the published terms of the updated structure.
The updated structure links customers' offsetting credits to net issuance of the 2 stablecoins during the billing period, according to the tier schedule published by Circle. Positive net issuance qualifies a customer for a credit offsetting 25% of fees. The offset rises to 75% when net issuance reaches $40 million during the period. At $100 million, the offset reaches 100% of fees paid. However, the company stipulates that these credits are "not guaranteed" and cannot exceed the fees paid by the customer.
Circle Mint serves institutions, including exchanges, banks, institutional traders and wallet providers, according to the company's description of the service. Circle says the platform is unavailable to individuals, defining the scope of customers who can use its direct redemption channel. Account applicants undergo background checks, identity verification and sanctions screening as part of the platform's onboarding process. USDC's terms require a Circle Mint account in good standing for direct redemption. Circle allows USDC to be redeemed for dollars and EURC for euros at a 1:1 ratio to their respective currencies.
USDC's circulating supply stood at about $73.3 billion at the end of the second quarter of 2026, up 19% year-on-year, according to Circle's financial results. The company reported reserve income of $668 million during the same quarter, up 5% from the corresponding period a year earlier. USDC's terms stipulate that the stablecoin's reserves are segregated in accounts separate from Circle's operating funds. As part of efforts to expand institutional use, Circle and Volante announced a collaboration enabling banks to integrate USDC operations into existing multi-rail payments infrastructure. Circle is scheduled to announce its third-quarter 2026 results on 4 November 2026, according to the company's investor announcement.