Circle raises USDC exchange fees for second time this year

For the second time in less than a year, Circle Internet Financial Ltd. has increased the fees it charges for USDC exchange. 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 near-instantaneous redemptions of USDC, and the amount exceeds $2 million per day, additional fees will be charged. These fees start at 0.03% per transaction at that threshold and increase to 0.1% in batches for redemptions over $15 million. “The Circle Mint redemption 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. Traders can choose to redeem USDC for free if they are willing to wait two days to receive cash. 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 fee increase would make USDC unattractive for trading. (Bloomberg)