What To Know:
- Circle reported a strong third quarter, with USDC in circulation reaching $73.7 billion, up 108% year-over-year.
- The company’s Arc public testnet saw participation from over 100 firms, signaling Circle’s shift toward institutional on-chain adoption.
- USDC activity expanded sharply, with 6.3 million wallets holding more than $10 in USDC and Circle Payments Network supporting flows across eight countries.
Circle released third-quarter results that revealed USDC in circulation reached $73.7 billion. These striking figures are up 108 percent year over year, while total revenue and reserve income climbed to $740 million, which is a 66% jump. Net income rose to $214 million, a 202 percent increase, driving adjusted EBITDA to $166 million. Those figures reflect both growing demand for dollar-denominated settlement and the leverage inherent in a business tied to reserves.
Circle Reports Stablecoin USDC Circulation Figures
Executives framed the quarter as validation of a larger vision. Circle’s Arc public testnet, launched in late October with participation from more than 100 firms across banking, payments, capital markets and technology, points to a deliberate tilt toward onboarding institutional capital and commercial workflows on-chain. The company is openly exploring a native token for Arc, a step that would mark a material evolution in how Circle coordinates incentives and drives participation on its Layer-1 network.
The company’s operating metrics reveal structural momentum. Average USDC in circulation stood at $67.8 billion, USDC minted totaled $79.7 billion for the quarter and USDC redeemed reached $67.3 billion. USDC on platform ballooned to $10.2 billion, an increase that suggests more activity inside Circle’s ecosystem rather than simple pass-through issuance. Meaningful wallets holding more than $10 of USDC rose to 6.3 million. Together, these figures illustrate both breadth and depth of adoption.
Circle’s commercial pipeline also broadened. The Circle Payments Network now supports flows in eight countries, with 29 financial institutions enrolled and hundreds more in the pipeline. New partnerships were also announced since the previous quarter including players across finance and payments. The tokenized money market fund, USYC, grew rapidly to around $1 billion. This implies growing demand for yield-bearing onchain cash alternatives that institutional and retail users find attractive.
There are clear sources of the profit mix. Reserve income topped $711 million for the quarter, a number driven by the near doubling of average USDC in circulation. This was the case even though the company flagged a decline in the reserve return rate. Other revenue, composed largely of subscriptions and services, rose materially and management raised its 2025 outlook for other revenue to between $90 million and $100 million. Operating expenses rose as well, led by compensation and investments in platform capabilities.
The report does not ignore risk. Circle’s filing reiterates exposure to regulatory changes, potential redemption pressure and the operational demands of scaling reserve management and compliance. The company’s balance sheet shows substantial cash and assets segregated for stablecoin holders, but it also reflects liabilities linked to stablecoin deposits that scale in tandem with circulation. Management noted an income tax benefit and noncash items that shaped net income for the quarter, elements investors will need to parse alongside recurring performance measures.
As per central insight from Q3, Circle is moving beyond issuer status toward building an economic operating system, one that blends custody, rails and programmable settlement. The Arc testnet and the native token discussion are both tactical moves towards the architecture. If executed well, Circle’s stack could simplify how institutions move dollar liquidity onto blockchains and how applications leverage reliable, dollar-denominated rails.
Yet execution risk is substantial, and the regulatory landscape remains a dominant variable. As of now, market participants are particularly keen on how Circle balances growth, reserve returns and compliance as it expands commercial partnerships and contemplates a token on Arc.
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