Circle brought in $1.4 billion in revenue in the first half, but kept just 7 cents for itself
USDC settled $36 trillion on-chain in the first half of the year. Circle minted and redeemed more than $315 billion, averaging $1.7 billion a day and accounting for 77% of global stablecoin trading volume. Of its $1.4 billion in revenue, $819 million went to distribution partners and transaction costs, while $473 million was spent on licenses, banking partnerships, settlement liquidity, and multichain deployment. That left just 7 cents in net profit for every dollar. In September, Binance signed a five-year commercial agreement with Circle and invested $100 million.
More than 150 platforms share reserve income based on their USDC balances, giving trading platforms and market makers an incentive to keep those balances on their books, ready to use as buying power in spot markets. Free, near-real-time redemptions, along with bank channels that process transfers within two business days, reduce the lag for fiat to enter the market and speed up large-scale rebalancing. USDC’s share has surged from 60% to 77%, and the overall stablecoin market is still growing. In the short term, buy-side support below will only deepen: pullbacks should be shallow, and a retest of the previous high is more likely than a deep selloff and shakeout. The risk to watch is that 7 cents: if Circle has to give up a larger share, expansion will slow first. At that point, watch whether total stablecoin supply has peaked.
What’s your cost basis on the U you’re holding? With USDC expanding its balance sheet this way, are you planning to add to your spot position or switch into USDC first to earn a share of platform revenue?
$BTC $BNB $USDC
USDC settled $36 trillion on-chain in the first half of the year. Circle minted and redeemed more than $315 billion, averaging $1.7 billion a day and accounting for 77% of global stablecoin trading volume. Of its $1.4 billion in revenue, $819 million went to distribution partners and transaction costs, while $473 million was spent on licenses, banking partnerships, settlement liquidity, and multichain deployment. That left just 7 cents in net profit for every dollar. In September, Binance signed a five-year commercial agreement with Circle and invested $100 million.
More than 150 platforms share reserve income based on their USDC balances, giving trading platforms and market makers an incentive to keep those balances on their books, ready to use as buying power in spot markets. Free, near-real-time redemptions, along with bank channels that process transfers within two business days, reduce the lag for fiat to enter the market and speed up large-scale rebalancing. USDC’s share has surged from 60% to 77%, and the overall stablecoin market is still growing. In the short term, buy-side support below will only deepen: pullbacks should be shallow, and a retest of the previous high is more likely than a deep selloff and shakeout. The risk to watch is that 7 cents: if Circle has to give up a larger share, expansion will slow first. At that point, watch whether total stablecoin supply has peaked.
What’s your cost basis on the U you’re holding? With USDC expanding its balance sheet this way, are you planning to add to your spot position or switch into USDC first to earn a share of platform revenue?
$BTC $BNB $USDC