Circle launches USDC auctions letting institutions capture redemption fees
- —Service is open to approved institutional Circle Mint customers, with availability varying by jurisdiction
- —Clearing fee on a redemption cannot exceed the customer's stated maximum or the Express redemption rate
- —Circle retains no separate spread on matched volume; rebates go only to filled mint orders
- —Orders lock one minute before clearing; matched redemptions settle in USDC as fast as Express
Why it matters: The mechanism turns USDC redemption fees into an incentive for institutional minting and could lower liquidity costs for Circle's largest clients.
Source: Cryptonews.net