Circle Reports Strong Q3 Earnings
Circle (CRCL), the issuer of USDC stablecoin, reported strong results for Q3. The company’s revenue reached $740 million, a 66% increase from last year. USDC circulation grew to $73.7 billion, more than double the amount from a year ago. Net income rose 202% to $214 million.
Growth Driven by USDC Adoption
The increase in revenue and reserves was mainly due to rising demand for USDC. Average circulating USDC grew 97% to $67.8 billion during the quarter. Circle’s other revenues from subscriptions and services also increased to $29 million. The company raised its revenue forecast for fiscal year 2025 to $90-$100 million, up from $75-$85 million.
CEO Jeremy Allaire said the results show how USDC is becoming more useful globally. He said, “With growing circulation, accelerating commercial partnerships, and expanding collaboration, we are making progress toward a more open and efficient global financial system.”
Plans for Arc Layer 1 Token Launch
Circle is exploring a native token for its Arc Layer 1 blockchain. The Arc public testnet launched in late October and has attracted interest from over 100 companies in banking, payments, and digital assets. This token aims to align incentives for developers and institutions using the Arc ecosystem.
Despite positive earnings, Circle’s share price fell 9% on Wednesday. The company went public on the New York Stock Exchange earlier this year and benefits from growing demand for stablecoins in payments and DeFi markets.
