Leading stablecoin issuer Circle Internet Corp. (CRCL.US) reported third-quarter revenue that surpassed analyst estimates, with the circulation of its USD-pegged stablecoin USDC more than doubling year-over-year.
The financial results showed Circle's Q3 revenue reached $740 million, marking a 65.9% increase from the same period last year and exceeding the market consensus of $710 million. Earnings per share stood at $0.64, significantly higher than the expected $0.46. Net profit for the quarter was $214.4 million, compared to $71 million a year earlier.
Circle went public in June amid growing enthusiasm for stablecoins—digital assets typically pegged 1:1 to the U.S. dollar—which peaked ahead of the signing of the first federal regulatory framework in July. The company's stock surged following its listing, propelling co-founder Jeremy Allaire into billionaire status and setting a precedent for other digital asset firms.
Post-IPO, cryptocurrency exchange Bullish debuted on the NYSE, while rival platform Gemini began trading in September.
Circle raised its full-year adjusted operating expense guidance to between $495 million and $510 million, citing increased platform development investments and higher payroll taxes. The stock fell over 3% in pre-market trading, last quoted at $94.51, down 3.86%.
Despite a 200% rally since its market debut, Circle's shares have retreated more than 60% from their summer peak. Some analysts express concerns that the company’s heavy reliance on U.S. Treasuries and interest-bearing instruments backing its tokens could face pressure following the Federal Reserve’s rate cuts starting in September.
To diversify revenue streams, Circle is expanding into blockchain-based payment networks and tokenized money market funds. Earlier this year, it launched Arc, a public blockchain tailored for stablecoin transactions, aiming to penetrate cross-border settlements, merchant payments, and decentralized finance integration.
With approximately $75 billion in circulation, USDC ranks as the second-largest stablecoin after Tether Holdings SA’s $183 billion USDT.
