PANews reported on October 30 that according to The Block, stablecoin issuer Circle will increase the exchange fee for its USDC stablecoin. Circle will charge a fee for USDC exchange 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 be as high as 0.1% for redemptions exceeding $15 million.
The Block analysis stated that not all cryptocurrency practitioners can benefit from the Fed's interest rate cuts. For stablecoin operators, lower interest rates mean less income from cash reserves to support their tokens. Therefore, it seems reasonable for Circle to adjust its fees in the face of a lower interest rate environment and IPO pressure. But given the growing competition in the stablecoin field, it is a tricky time to increase the cost of USDC redemption.
