Aug 12, 2025 - Business

Circle reports $658M in revenue, 53% growth, on stablecoin reserves in Q2

Brady Dale

Group of people in business attire gathered around a shiny golden sphere at the New York Stock Exchange, celebrating Circle Internet Group's stock listing shown on monitors above. — Circle CEO Jeremy Allaire, center, during the company's IPO on the New York Stock Exchange in June. Photo: Michael Nagle/Bloomberg via Getty Images

Circle has completed its first quarter as a public company, reporting $658 million in returns on its stablecoin reserves — its main source of profit — while holding onto $251 million of that after distribution costs.

Why it matters: Circle, based in the U.S., is the world's second-largest stablecoin issuer after Tether, one that is moving fast to establish a beachhead in a new regulatory landscape as many larger players are expected to enter the space.

Between the lines: Circle's largest distribution cost is to Coinbase, where it splits any revenue earned on the reserves for stablecoins that are held on the crypto exchange.

So the more USDC is held on Coinbase, the more it cuts into Circle's earnings.
Circle's margin, after distribution costs, was 38%.

How it works: Circle's profits are largely derived from earnings on the assets that it holds — mainly short-term U.S. Treasuries and cash — to back its stablecoin, USDC, in circulation.

It also earned $23.8 million in other revenue for the quarter.

By the numbers: There was an average of $61 billion in USDC in circulation through the quarter, with 90% growth from last year's second quarter.

Its revenue increased 53% year-over-year.
It recorded a loss of $482 million for the quarter, driven primarily by costs incurred by running its initial public offering.

The impact: Circle's stock is up 7% in pre-market trading just after 8am ET. It's current market cap of $39 billion amounts to around 63% of the value of the market cap of USDC.

Flashback: In June, the company completed an IPO in which it sold 19.9 million shares at $31, earning net proceeds of $583 million.

The bottom line: Its chief competitor, Tether, which is not publicly traded, reported in a quarterly attestation that it earned $4.9 billion in profit in Q2, on a circulating supply of $157 billion in USDT, so Circle has a long way to go catch up.

And that's before companies like Bank of America enter the stablecoin sector.

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Circle reports $658M in revenue, 53% growth, on stablecoin reserves in Q2

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