Key Highlights
- •Circle’s Q3 revenue rose 66% as USDC use grows, showing steady adoption and increasing activity in payments and blockchain systems.
- •The Arc blockchain testnet now has over 100 companies, with a native token planned to boost participation and network engagement.
- •Circle’s payments network expands globally, partnerships grow, and its USYC fund doubles, highlighting wider adoption of digital finance tools.
Financial Performance and USDC Growth
Circle Internet Group, the issuer of the USDC stablecoin, announced that its revenue increased by 66% for the third quarter of 2025. Total revenue and reserve income reached $740 million, while net income surged to $214 million, marking a 202% increase over the same period last year. This growth is attributed to the increasing usage of USDC and Circle's ongoing development efforts in payments and blockchain systems.
According to the official report, the total USDC in circulation reached $67.8 billion, up 97% year-over-year. USDC held on the platform increased to $10.2 billion, a substantial rise of 1,277%. Daily usage on the platform also saw a significant increase, reaching 13.5%. Further details from the report indicate that USDC minted in Q3 2025 stood at $79.7 billion, with redemptions at $67.3 billion.
The report also highlighted that the market share for the stablecoin reached 29%, and the number of wallets holding more than $10 USDC grew to 6.3 million, an increase of 77%.
Revenue Growth and Financial Strength
A significant portion of Circle’s revenue growth originated from its reserves income, which reached $711 million, representing a 60% year-over-year increase. This growth was achieved despite a slight decline of 96 basis points in the reserve return rate. Other revenue streams contributed $29 million, a sharp increase of $28 million compared to the previous year, reflecting expansion in subscriptions, services, and transaction revenues.
Concurrently, total distribution, transaction, and other costs increased by 74% to $448 million, driven by expanded USDC balances and strategic partnerships. Operating expenses saw a rise of 70%, reaching $211 million, with substantial contributions from stock-based compensation and payroll increases. The company's Adjusted EBITDA reached $166 million, demonstrating operational leverage at Circle.
Jeremy Allaire, Circle’s Co-Founder and CEO, emphasized the company’s mission, stating, "Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet." He also noted the extraordinary enthusiasm generated by the Arc public testnet among traditional and digital finance partners.
Arc Blockchain and Corporate Expansion
The report further detailed Circle's development of its Arc Network, a new blockchain designed for building financial applications. Over 100 companies, including banks and fintech firms, are currently testing the network. In its latest report, Circle also indicated that it is considering the introduction of a native Arc token to further encourage participation and usage of the network.
Additionally, the Circle Payments Network (CPN) is experiencing growth, operating in eight countries with 29 banks and financial firms already enrolled. Another 55 firms are under review, with potential for up to 500 more to join. Since its launch in May, CPN's transactions have reached an annualized rate of $3.4 billion.
Circle has established partnerships with prominent companies such as Brex, Deutsche Börse, Finastra, Fireblocks, Kraken, and Visa, indicating wider adoption across payments, banking, and digital assets sectors. Its tokenized money market fund, USYC, also saw significant growth, increasing by over 200% from June to November, reaching approximately $1 billion.
Future Outlook
Circle's strategic objective is to maintain the growth of USDC circulation at approximately 40% per year over the next few years. The company has also revised its revenue forecast for 2025 upwards to $90–$100 million, an increase from the previous projection of $75–$85 million. Adjusted operating expenses are anticipated to range between $495–$510 million to accommodate platform growth, partnerships, and payroll costs. The projected RLDC margin is around 38%.
Allaire's strategic approach is noted for its focus on integrating cryptocurrency into the existing fiat system, contrasting with some aspects of the Bitcoin ecosystem's philosophy. Cory Klippsten of Swan Bitcoin commented on this, stating, "In contrast to Bitcoin’s goal of separating money from the state, his work has centered on integrating crypto technology into the existing fiat system."
Allaire highlighted the importance of conviction in navigating setbacks: "You are going to suffer setbacks, everyone tells you [that] you are wrong, you are going to fail. For me, this isn’t just about a business idea. I am doing this because I literally think that this is going to improve the world."
Circle’s Q3 results demonstrate consistent growth in stablecoin utilization and blockchain activity. The planned introduction of the Arc token is expected to further enhance participation in the network. The expansion of its partnerships and payments network signifies a growing role in the digital finance infrastructure.
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