Circle raises USDC exchange fees for second time this year

Odaily News Circle Internet Financial Ltd. has increased the fees it charges for USDC exchange for the second time in less than a year. Redemptions of USDC through the Circle Mint platform used to be free and unrestricted. In February, Circle began charging fees for exchange transactions over $15 million. Now, if users want to redeem USDC nearly instantly and in amounts exceeding $2 million per day, they will be required to pay additional fees. These fees start at 0.03% per transaction at that threshold and increase in batches to 0.1% for redemptions over $15 million. "The Circle Mint exchange option supports the availability of instant liquidity around the world - similar to banks and other financial institutions that charge speed and service fees," a Circle spokesperson said. If traders are willing to wait two days to receive cash, they can choose to exchange USDC for free. Circle introduced the new tiered fee structure in late September, according to a person familiar with the matter. Customers expressed concerns to Circle that the rising fees would make USDC unattractive for trading. (Bloomberg)