Circle Beats Expectations on Strong USDC Growth
USDC transactions jumped sharply, while Circle also reported progress on Arc and new institutional support from BlackRock, Visa, and Mastercard.
Key Takeaways
- Circle beat expectations by a wide margin in the third quarter with net income of $226 million and revenue of $865 million.
- USDC onchain transaction volume rose 49% to $13.9 trillion, while adjusted earnings per share came in at 84 cents.
- Circle launched Arc on mainnet, announced the acquisition of Tazapay, and is cutting 5% of its staff.
Circle far outpaced analysts' expectations in the third quarter, while usage of USDC kept rising. The stablecoin issuer reported net income from continuing operations of $226 million (€202 million), up 5% year over year, and saw revenue and reserve income climb to $865 million (€774 million).
USDC Remains the Engine
The main growth driver was once again USDC usage. Onchain transaction volume rose 49% to $13.9 trillion (€12.4 trillion). That shows Circle is seeing the stablecoin used more and more for payments and settlement in the crypto market. Circle also reported adjusted earnings per share of 84 cents, well above the expected 37 cents.
Revenue also came in clearly above estimates. Analysts were looking for $778 million (€696 million), but Circle came in more than 11% higher. Some of that income came from the private presale of ARC, the native token of Circle’s Arc blockchain.
Arc and Tazapay in Focus
Circle highlighted the public mainnet launch of Arc as one of the quarter’s biggest milestones. Arc is a Layer 1 blockchain aimed at financial markets and fast money movement. According to the company, gas fees are paid in USDC, giving users a more stable and predictable cost model.
The launch also drew major players. Circle pointed to more than 100 institutional and ecosystem builders involved, including BlackRock, Visa, and Mastercard as founding validators. The company also announced the agreed acquisition of Singapore-based payments network Tazapay and a $100 million (€89.5 million) investment from crypto exchange Binance.
Restructuring Alongside Growth
At the same time, Circle announced a 5% reduction in headcount. For that, the company booked a $9.1 million (€8.1 million) restructuring charge in the third quarter. Circle said the layoffs are meant to better align the organization with its business model.
For European crypto followers, the key point is that Circle is continuing to build out USDC as one of the biggest stablecoins in the market. The mix of strong transaction growth, new infrastructure through Arc, and more institutional involvement could matter for how stablecoins are used in broader payment flows. The recent pressure on the USDC model also shows that Circle has to actively defend its position now that rivals are trying to pull away partners and reserve income.