Circle’s Q3 net income soared 202% year-over-year to $214 million, driven by strong growth in USDC demand.
Circulation of USDC more than doubled to $73.7 billion, boosting Circle’s market share to 29%.
The firm’s new Layer-1 blockchain, Arc, has entered public testnet with over 100 major companies involved.
Circle reported a sharp increase in third-quarter profit and revenue on Wednesday, Nov. 12, driven by surging demand for its U.S. dollar-pegged stablecoin, USDC.
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Circle reported a net income increase of 202% year-on-year to $214 million, while total revenue and reserve income rose 66% to $740 million.
USDC, the world’s second-largest stablecoin by market capitalization, saw circulation surge 108% to $73.7 billion at quarter-end.
This gives Circle a 29% share of the stablecoin market, up more than six percentage points from a year ago.
Circle CEO Jeremy Allaire’s comment on Q3 earnings. | Credit: X.
Operating expenses increased 70% to $211 million, driven by higher headcount and stock-based compensation, but adjusted operating expenses rose a more modest 35%.
“Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet,” CEO Jeremy Allaire said in a statement.
He added: “With growing circulation, accelerating commercial partnerships and expanding collaboration across industries, we’re proud of the tangible progress toward a more open and efficient global financial system.”
Boosted Institutional Adoption
Circle’s strong quarter reflects renewed momentum in institutional adoption following a year of regulatory progress.
A centerpiece of Circle’s growth strategy is Arc, its new Layer-1 blockchain, launched in public testnet form on October 28.
The company said it was exploring a native token for Arc, which has had over 100 major companies, including banks, join its testnet.
“We made huge progress delivering platforms for the world’s leading startups and financial firms, and saw strong growth and market-share gains for USDC,” Allaire said.
Meanwhile, Circle said its Circle Payments Network (CPN) now operates in eight countries, with 29 financial institutions onboarded and more than 500 in the pipeline.
Crypto Firms Soaring
According to FactSet data, 91% of S&P 500 companies have reported results as of Nov. 7, with analysts expecting a 13.1% jump in earnings per share during the third quarter.
On Wednesday, Nov. 5, Robinhood reported a 339% annual surge in crypto revenue.
Overall transaction revenues increased 129% year-over-year to $730 million, driven by a “nice step-up in crypto volumes,” CFO Jason Warnick said.
Meanwhile, Gemini shares fell on Monday after the company reported heavy losses in its first earnings release since going public.
Despite the firm reporting revenues of $50.6 million, more than doubling from $24.5 million a year earlier, the company posted a net loss of $159.5 million.
Co-founder Cameron Winklevoss told investors the exchange was hoping to pursue a “super app” to bring together its products.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
