Original Author: KarenZ, Foresight News
Last night, the first public company in the stablecoin sector, Circle, released its third-quarter financial report, presenting an impressive performance and launching a series of initiatives for ecosystem development. At the same time, Circle revealed its progress in building the Arc Network and the CPN payment network.
Here are the key highlights from this financial report:
1. USDC Supply: Increased by 108% Year-on-Year
As of the end of the third quarter, the circulation of USDC reached $73.7 billion, reflecting a remarkable year-on-year growth of 108%, indicating the overall expansion of the stablecoin market.
Meanwhile, USDC's market share reached 29%, an increase of 643 basis points compared to the same period last year. Among numerous stablecoin competitors, USDC has become a significant player, second only to USDT, and this growth in market share demonstrates the increasing trust users have in USDC.
2. Net Profit: Reached $214 Million, Up 202% Year-on-Year
This directly drove a significant increase in the company's total revenue and reserve interest income, reaching $740 million, a year-on-year increase of 66%. Of this, reserve interest income contributed $711 million, up 60% year-on-year, becoming a core pillar of revenue, primarily due to the increase in USDC circulation.
Notably, the performance on the profit side is worth attention. Circle achieved a net profit of $214 million in the third quarter, a year-on-year increase of 202%. This high growth rate is attributed to both the expansion of business scale and the impact of tax benefits and the decline in the fair value of the company's convertible bonds.
Other income, although smaller in scale, saw an astonishing growth, reaching $28.518 million, up more than 50 times from $547,000 in the same period last year, mainly due to strong growth in subscription services and trading income.
3. Arc Network: Circle is Exploring the Possibility of Launching a Native Token on Arc
Circle stated that it is exploring the possibility of issuing a native token on the Arc Network. On October 28, Circle launched the Arc public chain testnet, attracting over 100 companies to participate. These participants include institutions from various fields such as banking, payments, capital markets, asset management, technology, and multiple segments of the digital asset ecosystem.
Circle hopes that the Arc token can drive network adoption and further align the interests of Arc stakeholders.
4. CPN Payment Network: Annualized Transaction Volume Reaches $3.4 Billion
Since the launch of the Circle Payments Network (CPN) at the end of May this year, 29 financial institutions have joined, with another 55 under review and 500 more in preparation to join. Currently, CPN supports fund flows in 8 countries.
Based on the 30-day rolling transaction volume as of November 7, CPN's annualized transaction volume can reach $3.4 billion, demonstrating strong demand from institutional clients.
Additionally, Circle has established new partnerships with companies such as Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú, and Visa, further enhancing USDC's position in global payment and financial infrastructure.
5. Tokenized Money Market Fund USYC: Size Reaches $1 Billion
Circle's tokenized money market fund, USYC, also performed excellently, growing over 200% from June 30, 2025, to November 8, 2025, reaching approximately $1 billion. This reflects the potential of the integration of digital assets with traditional finance.
6. Fiscal Year 2025 Outlook
Based on the strong performance in Q3 and the growth in market demand, Circle has raised its expectations for other income from the previous range of $7.5 million - $8.5 million to $9 million - $10 million, primarily due to the continued growth in subscription services and trading income; the expected RLDC profit margin is projected to reach 38% ("Revenue - Distribution Costs" / Revenue), at the upper limit of the previous guidance range; the adjusted operating expense expectation has been raised to $495 million - $510 million, indicating that Circle is increasing its investment.
How to View Circle's Latest Financial Report?
This financial report showcases Circle's strong position in the stablecoin sector and the initial results of its diversified exploration. This growth is not a single breakthrough but a simultaneous advancement across multiple dimensions, including supply, revenue, profit, and market share.
Although "other income" is relatively small, its growth rate is astonishing, and the increase in subscription services and trading income suggests that Circle is attempting to break through its "single interest dependency," with signs of a diversified revenue structure beginning to emerge.
It is also worth emphasizing that this year is a critical juncture for Circle's ecosystem, with the launch of the Arc public chain testnet and the scaled expansion of the payment network (CPN) reflecting that Circle is undergoing a significant transformation—from a pure stablecoin issuer to a platform company providing comprehensive financial infrastructure. The robust growth of USDC's scale lays the foundation for this evolution, while the development of the Arc ecosystem and the CPN payment network opens up greater possibilities for the future. Coupled with the compliance benefits following the implementation of the U.S. "GENIUS Act," the entry of traditional financial institutions is becoming a new engine for the growth of USDC circulation.
However, this financial report also exposes potential challenges that Circle must face in its development process.
Despite the rapid growth of "other income," reserve interest income still accounts for nearly 96% of total revenue, indicating that the company's revenue is highly dependent on interest income generated from USDC reserve assets. This single revenue structure makes it highly sensitive to interest rate environments; if market interest rates enter a downward cycle in the future, the growth of reserve income will be directly pressured, subsequently affecting overall profitability. Currently, "other income" accounts for less than 4%, and has not yet formed an independent profit pillar capable of supporting performance, indicating that the transition to revenue diversification will still take time.
A closer look at the financial report reveals that the net profit of $214 million in Q3 includes $61 million in tax benefits (non-recurring) and $48 million in gains from the decline in the fair value of convertible debt (non-recurring), which together account for half of the net profit. Excluding these non-operating gains, the actual operating profit would significantly decrease.
Additionally, cost pressures on profit dilution are also quite evident. Distribution, trading, and other costs reached $448 million, a year-on-year increase of 74%, with cost growth outpacing revenue growth. High costs directly lead to squeezed profit margins; although net profit has seen substantial growth, the improvement in profit margins does not match the revenue growth rate, indicating a need for optimization. From a business logic perspective, these costs are closely related to factors such as partner revenue sharing, which are difficult to rapidly reduce in the short term, becoming a significant constraint on profit release.
At the same time, Arc is currently only in the testnet phase, and whether it can attract enough developers and users to foster an active ecosystem still requires time to verify.
Overall, this financial report reflects the typical characteristics of a rapidly growing company: opportunities and challenges coexist, with short-term results being impressive, while long-term success depends on strategic execution and risk management capabilities. As the integration of crypto assets with traditional finance accelerates and global demand for digital dollars continues to rise, Circle's story is just beginning.
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