Circle Raises Stablecoin Redemption Fees, Risking User Backlash

For the second time in less than a year, Circle Internet Financial Ltd. has increased the fees it charges to cash out holdings of its USDC stablecoin.

Redemption of USDC via the Circle Mint platform used to be free and unlimited. In February, Circle introduced a fee for swaps above $15 million. Now, there are additional fees applicable to users seeking near-instant redemption of USDC if the value exceeds more than $2 million a day. Those fees start at 0.03% per transaction at that threshold, and increase in tranches to as much as 0.1% for redemptions above $15 million.

“Circle ...