Circle pulled in $1.4B revenue but only kept 7% as profit 👀
That's ~$98M net on a stablecoin machine. Where'd the rest go?
Likely:
• Banking/custody fees
• Compliance/legal overhead
• Reserve management costs
For context — $USDC is the 2nd largest stablecoin. If margins are this tight at scale, it shows how capital-intensive the regulated stablecoin game is.
Tether ($USDT) doesn't publish financials like this, but rumors suggest way fatter margins. Circle plays by the rules, Tether plays by... different rules.
Stablecoin wars = margin wars.
That's ~$98M net on a stablecoin machine. Where'd the rest go?
Likely:
• Banking/custody fees
• Compliance/legal overhead
• Reserve management costs
For context — $USDC is the 2nd largest stablecoin. If margins are this tight at scale, it shows how capital-intensive the regulated stablecoin game is.
Tether ($USDT) doesn't publish financials like this, but rumors suggest way fatter margins. Circle plays by the rules, Tether plays by... different rules.
Stablecoin wars = margin wars.