Circle launches USDC auctions for institutions to collect fees

Circle has introduced a new service called Circle Match, allowing institutions cashing out of USDC to fund rebates for those minting it through hourly auctions, as announced on October 22. The service is available to eligible institutional Circle Mint customers, requiring approval and varying by jurisdiction. Customers converting USDC back into dollars can control the maximum fee they will accept, while those converting dollars into USDC set a minimum rebate. Matched orders in the auction clear at a uniform fee, which is paid by redeemers and goes to matched minters as spendable USDC in their Mint wallets. The rebate is contingent on a matched minting order, and simply holding USDC does not qualify for it. The clearing fee for matched redemptions cannot exceed the customer's maximum stated fee or the rate for Circle's Express redemption service. Both redeemers and mint-side customers must fund their orders before entering the auction. Redeemers deposit USDC, while mint-side customers wire dollars into a restricted Match balance. Participants can request redemption of their restricted Match-only USDC without a fee, with corresponding dollars returned to their bank account. A one-minute lock before clearing prevents withdrawal of committed orders, but new orders and price improvements are allowed. Unmatched amounts follow the customer's selected Fallback, Roll, or Cancel setting. Circle emphasizes that matched redemptions are subject to U.S. banking hours, and delays due to banking-hour constraints do not constitute a settlement failure.

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