Circle will remove additional fees previously charged during the USDC redemption process. It will keep the base fee for the express service designed for faster processing.

On Oct. 19 local time, blockchain media outlet CryptoSlate reported that existing Mint customers will be moved to the new pricing structure starting with the billing cycle after that date. No separate application process is required, and the effective date may vary depending on each customer’s billing schedule.

Circle Mint is a service for exchanges, institutional investors, banks and digital wallet operators. Customers can deposit dollars through a linked bank account to mint USDC, or redeem USDC at a 1-to-1 ratio for dollars. It is not a service provided directly to individual investors.

Under the overhaul, redemption services will be reorganised into two tiers: standard and express. The existing basic tier will be renamed standard, and the institutional tier will be renamed express, while the former standard tier will be discontinued. Additional fees previously charged across all tiers for amounts exceeding net redemptions will also be removed.

There is no fee for standard redemptions, but express redemptions will carry a base fee of 0.05 percent of the redeemed amount. This is before applying any conditional credits, and customers can choose a method based on processing speed and cost.

Express customers may receive fee discounts based on net issuance if the amount issued during the billing period exceeds the amount redeemed. If net issuance is positive, a 25 percent credit applies; if it is $40 million or more, a 75 percent credit applies; and if it is $100 million or more, a 100 percent credit applies. Credits cannot exceed the redemption fees incurred during the period, and do not apply if net issuance is 0 or less.

Processing speeds are unchanged. Standard redemptions take up to 2 business days, while express redemptions are processed immediately. For both methods, bank settlement times are separate, meaning Circle’s completion of processing does not immediately mean the funds are deposited into an account.

Redemption fees and blockchain transfer fees apply separately. Sending USDC from a Mint account to an external wallet may incur transfer costs depending on the blockchain used and network conditions. This means that even if standard redemption fees are eliminated under the overhaul, on-chain transfer costs are not waived.

The changes are significant in that they more clearly separate USDC redemptions into a standard route and an express route. Circle reaffirmed a structure that removes extra costs for standard redemptions while maintaining a separate fee for the fast-processing service.