Circle 2025 Annual Report In-Depth Analysis: USDC Circulation Surges 72%, Revenue Breaks $2.7 Billion Growth Logic

February 25, 2026, stablecoin issuer Circle Internet Group announced its Q4 and full-year financial results as of December 31, 2025. This financial report is not only Circle’s first annual performance since going public but also a key example of the integration process between on-chain finance and traditional payment systems, driven by the strong growth of its core asset USDC.

Quick Overview of Circle’s Financials: The Underlying Code Behind 72% Annual USDC Circulation Growth

The report shows that Circle experienced significant business expansion in fiscal year 2025. Total revenue and reserve income for the year reached $2.7 billion, a 64% increase year-over-year. Of this, $770 million was generated in the fourth quarter alone, a 77% increase compared to the same period last year. Although net loss for the year was $70 million, this mainly resulted from $424 million in stock-based compensation expenses following the IPO. Excluding this, operating profit was approximately $157 million, and adjusted EBITDA reached $582 million, up 104% year-over-year, demonstrating solid profitability in core operations.

From Going Public to Breaking Regulatory Barriers: A Recap of Circle’s Key Timeline in 2025

The release of this financial report marks a year of market validation for Circle’s business model after becoming a publicly traded company. In 2025, Circle completed a merger with a special purpose acquisition company (SPAC) and officially listed on the New York Stock Exchange. Throughout the year, the company continued building its “Economic Operating System”:

• Q1-Q3 2025: Expanded USDC’s global use cases and explored partnerships with multiple traditional financial institutions.
• Q4 2025: Achieved several operational breakthroughs, including the public beta launch of Arc, a blockchain infrastructure platform for institutional clients, and expanded Circle Payment Network (CPN) financial partnerships to 55 firms.
• December 2025: Received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a nationwide trust bank, laying a regulatory foundation for USDC’s compliant reserves and on-chain financial infrastructure.

Data Breakdown: The Flywheel Effect of $75.3 Billion USDC Circulation and 247% Transaction Growth

Analyzing this report, the core growth driver remains USDC. Data shows that USDC adoption has entered a flywheel phase of simultaneous volume and value increase.

First, the scale has achieved exponential growth. By the end of 2025, USDC’s circulation reached $75.3 billion, a 72% increase year-over-year. Correspondingly, the average circulating amount for the year also grew by 95%, reaching $64.9 billion. This scale expansion directly boosted Circle’s main revenue source—reserve income. Reserve income in Q4 was $73.3 million, up 69% year-over-year. Despite a decline in reserve yields due to macro interest rate changes, the doubling of scale fully offset the narrowing interest margin.

Second, on-chain activity surged exponentially. In Q4 2025, USDC’s on-chain transaction volume hit an astonishing $11.9 trillion, a 247% increase year-over-year. This indicates USDC is shifting from a “hold” asset to a high-frequency “transaction” settlement medium. Meanwhile, the number of “effective wallets” holding over $10 USDC reached 6.8 million, a 59% increase, showing broad user base penetration.

Additionally, product diversification is beginning to take effect. The euro-pegged stablecoin EURC’s circulation reached €310 million, a 284% increase year-over-year, demonstrating Circle’s initial success in non-dollar markets.

Optimism and Caution: How Does the Market View Circle’s Achievements and Challenges?

Market reactions to this financial report are generally positive, but perspectives vary.

• Optimists believe the surge in USDC’s circulation and trading volume confirms the central role of compliant stablecoins in institutional adoption. Notably, collaborations with Visa on cross-border settlement, strategic integration with Intuit, and USDC becoming a core collateral asset for Polymarket all demonstrate its deep integration into mainstream finance and applications. Following the report, Circle’s stock price briefly surged over 20%, approaching $74, reflecting short-term market confidence in its growth story.
• Pessimists focus on net profit losses and declining reserve yields. Although these losses are mainly accounting-related, some believe that as the Federal Reserve enters a rate-cutting cycle, the decline in reserve asset yields will pose ongoing challenges to Circle’s profitability. Additionally, despite rapid growth, the stablecoin market remains dominated by Tether, which holds about 28% market share for USDC—an increase but still a significant gap compared to competitors.

Narrative vs. Reality: How Far Has Circle’s “Economic Operating System” Progressed?

Assessing Circle’s narrative of “building an economic operating system for the internet” requires distinguishing between its actual progress and long-term vision. In reality, USDC’s circulation, trading volume, and Circle’s revenue and EBITDA have all achieved double-digit growth, and the company obtained an OCC trust bank license, a key regulatory asset. On the strategic level, CEO Jeremy Allaire’s assertion that “more enterprises, developers, and government agencies will use digital dollars for real payments and on-chain finance” is supported by data such as increasing wallet numbers and a payment network with an annualized transaction volume of $5.7 billion. However, much depends on whether the Arc mainnet, launched later this year, can support frictionless cross-border payments and AI-driven emerging applications as expected. Currently in testing, its long-term ecosystem impact remains to be seen.

Trend Analysis from the Financials: How Will Circle Influence On-Chain Finance’s Future?

This financial report has a structural impact on the crypto industry. It sends a clear signal: compliant stablecoin issuers with scalable business models and high profitability potential are viable. USDC’s growth is interconnected with its integration into traditional financial infrastructure (e.g., Visa settlement) and the rise of new on-chain applications (e.g., prediction markets). This further consolidates stablecoins’ role as a “bridge” connecting traditional capital and the crypto world. For the entire crypto market, increasing USDC circulation injects more “fuel” into on-chain DeFi, payments, and other applications, forming the foundation for a bullish ecosystem.

Future Outlook: Can USDC Achieve 40% Annual Compound Growth?

Based on current data and company guidance, several scenarios for USDC and Circle’s future can be projected:

• Baseline Scenario: Circle’s target of 40% annual compound growth over multiple years is achieved. USDC’s circulation will continue to expand rapidly, leveraging its compliance advantages to steadily increase market share in cross-border payments and institutional settlement. Profits will improve with scale, gradually offsetting IPO-related one-time costs.
• Optimistic Scenario: The Arc mainnet launches successfully, attracting many developers and enabling innovative applications like AI payments and on-chain real economy projects. Meanwhile, the OCC trust bank license is fully implemented, allowing Circle to offer more banking and asset management services. Revenue shifts from reserve income to diversified service fees, greatly boosting valuation.
• Pessimistic Scenario: Macroeconomically, if major economies enter an unexpectedly aggressive rate-cutting cycle, reserve yields will be pressured. Competition from other yield strategies or broader channel partnerships could challenge USDC’s 40% growth target. Although U.S. regulation is becoming more friendly, regulatory uncertainties in other major economies could hinder USDC’s international expansion.

As of February 25, 2026, USDC’s price remains stable at $0.9999, with a 24-hour trading volume of $21.44 million and a market cap of approximately $75.38 billion. Its stability and scale data together form the current fundamentals of Circle’s business.

Conclusion: The Era of Scaled, Compliant Stablecoins Has Arrived

Circle’s 2025 financial report reveals a key fact: the scaling process of compliant stablecoins is accelerating. The USDC circulation surpassing $75.3 billion and annual revenue reaching $2.7 billion, alongside a 247% surge in on-chain transaction volume, reflects a structural shift—stablecoins are evolving from mere trading tools into core settlement layers of on-chain economic activity. This transformation is not isolated; it results from the integration with traditional payment networks, clearer regulatory frameworks, and emerging new applications, creating a flywheel effect in the stablecoin ecosystem.

Looking ahead, USDC’s growth path will face dual tests: whether scale expansion can continue to offset macro interest rate impacts; and whether infrastructure like Arc can foster innovative applications beyond current scenarios. For the crypto industry, Circle’s performance is not just about a single company’s financials but also a key indicator of how deeply on-chain finance is integrating with the traditional economy. In the process of mainstreaming digital assets, compliance, transparency, and practicality will be crucial variables shaping the final landscape.