Circle Posts Surging Q3 Profit: What Made the USDC Firm Fly This Quarter?

Key Takeaways

• Circle’s Q3 nett income soared 202% year-over-year to $214 million, driven by beardown maturation successful USDC demand.

• Circulation of USDC much than doubled to $73.7 billion, boosting Circle’s marketplace stock to 29%.

• The firm’s caller Layer-1 blockchain, Arc, has entered nationalist testnet with implicit 100 large companies involved.

Circle reported a crisp summation successful third-quarter nett and gross connected Wednesday, Nov. 12, driven by surging request for its U.S. dollar-pegged stablecoin, USDC.

The upbeat results travel during a week of amazingly beardown Q3 net from crypto firms, adjacent arsenic the broader markets stay nether pressure.

Circle reported a nett income summation of 202% year-on-year to $214 million, portion full gross and reserve income roseate 66% to $740 million.

USDC, the world’s second-largest stablecoin by marketplace capitalization, saw circulation surge 108% to $73.7 cardinal astatine quarter-end.

This gives Circle a 29% stock of the stablecoin market, up much than six percent points from a twelvemonth ago.

Operating expenses accrued 70% to $211 million, driven by higher headcount and stock-based compensation, but adjusted operating expenses roseate a much humble 35%.

“Circle continued to spot accelerating adoption of USDC and our level successful the 3rd 4th arsenic we physique the caller Economic OS for the internet,” CEO Jeremy Allaire said successful a statement.

Circle’s beardown 4th reflects renewed momentum successful organization adoption pursuing a twelvemonth of regulatory progress.

A centerpiece of Circle’s maturation strategy is Arc, its caller Layer-1 blockchain, launched successful nationalist testnet signifier connected October 28.

The institution said it was exploring a autochthonal token for Arc, which has had implicit 100 large companies, including banks, articulation its testnet.

“We made immense advancement delivering platforms for the world’s starring startups and fiscal firms, and saw beardown maturation and market-share gains for USDC,” Allaire said.

Meanwhile, Circle said its Circle Payments Network (CPN) present operates successful 8 countries, with 29 fiscal institutions onboarded and much than 500 successful the pipeline.

According to FactSet data, 91% of S&P 500 companies person reported results arsenic of Nov. 7, with analysts expecting a 13.1% leap successful net per stock during the 3rd quarter.

On Wednesday, Nov. 5, Robinhood reported a 339% yearly surge successful crypto revenue.