USD Coin launch (2018)
Circle launched USD Coin, a dollar-backed stablecoin, in 2018. The issuer kept the interest earned on the dollar reserves; the chains and applications that distributed USDC received none of it.
USDC grew into the second-largest stablecoin, with billions in reserve income flowing to Circle.
The model set the industry standard where issuers capture reserve yield and distribution partners get nothing.
This is the baseline Arbitrum is moving away from. The $2.2 billion in USDC on Arbitrum One generates reserve income that never reaches the chain.
