Circle's IPO financial report reveals: 98% of revenue comes from reserve assets, facing competition risks from sovereign stablecoins.

Crypto浪潮 · 2025-06-10T09:21:41+00:00

Circle disclosed its profit model after going public, showing that 98% of its revenue last year came from the investment income of reserve assets, with a yield ranging from 0.14% to 5.17%. The company faces market competition risks and needs to expand its encryption ecosystem to address potential challenges.

Crypto浪潮

2025-06-10 09:21:41

Abstract generation in progress

Golden Finance reported that after the listing of stablecoin issuer Circle 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.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes