Circle plans to increase the exchange fee for USDC stablecoin

According to reports, stablecoin issuer Circle will increase its exchange fee for the USDC stablecoin. Circle will charge a fee for USDC exchanges exceeding $15 million and an additional fee for instant redemptions exceeding $2 million per day. These fees start at 0.03% per transaction and can reach up to 0.1% for redemptions over $15 million.

Analysts say not all cryptocurrency practitioners can benefit from the Federal Reserve's interest rate cuts. For stablecoin operators, lower interest rates mean reduced income from cash reserves supporting their tokens. Therefore, it seems reasonable that Circle is adjusting its fees in the face of a low-interest-rate environment and IPO pressure. However, given the increasing competition in the stablecoin field, raising the cost of USDC redemption now is a tricky timing.