Circle, the issuer of USD Coin (USDC), has announced an increase in fees for redeeming its stablecoin, for the second time within a year.

As reported by Bloomberg on Oct. 29, the company has been applying fees for daily redemptions exceeding $2 million since September.

This follows the introduction of swap fees for redemptions above $15 million through the Circle Mint platform earlier this year.

The newly implemented fees start at 0.03% per transaction and can rise to 0.1% for withdrawals exceeding $15 million, impacting mainly institutional investors and high-volume traders.

Sources indicate that this adjustment aims to meet the heightened demand for liquidity as more institutions engage with digital assets.

However, traders can still redeem (USDC) without incurring fees if they opt for a cash transfer that takes up to two days.

Moreover, in the face of stiff competition in the stablecoin sector, Circle is advancing its plans for an initial public offering (IPO) and intends to move its headquarters to Wall Street by 2025.

The IPO application, filed in January, is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC).

Earlier this year, Circle became the first global stablecoin issuer to comply with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework.​

Additionally, Circle's integration of (USDC) with the banking systems in Brazil and Mexico in September enables real-time access to the stablecoin for local businesses​.

Despite these advancements, USDC's market share has declined over the past two years amid intensified regulatory scrutiny, currently standing at a market cap of $34 billion, compared to Tether's (USDT) $120 billion.