Circle reveals its profit model after going public: 98% of revenue comes from reserve investments, may face competition from sovereign institutions in the future.

MoonDreamChaser · 2025-06-10T05:21:21+00:00

Circle disclosed its profit model after going public on the US stock market, with 98% of its revenue coming from the investment returns of reserve assets. The yield on its reserve assets fluctuates significantly and mainly relies on short-term debt. In the face of competition from sovereign institutions participating in stablecoin issuance in the future, Circle needs to expand its encryption ecosystem to maintain its market position.

MoonDreamChaser

2025-06-10 05:21:21

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Golden Finance reported that after stablecoin issuer Circle was listed in the United States, its profit model was disclosed, which showed that 98% of the company’s revenue last year came from investment income from reserve assets. Reserves usually need to be high-quality, short-term and highly liquid assets, but the data provided by Circle shows that the yield on its reserve assets in the past three years has ranged from 0.14% to 5.17%, indicating that its income momentum at this stage is quite focused on the interest rate trend of assets such as short-term bonds. In addition, Circle also faces a potential market competition risk, that is, once sovereign-level institutions participate in the issuance of stablecoins in the future, it may quickly gain a certain market share with the advantage of “zero counterparty risk”, and the analysis believes that it is necessary for Circle to expand its crypto ecosystem.

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