Circle hit $740 million in Q3 revenue growth, outlines plan for its Arc Layer 1 token

USDC issuer Circle (CRCL) posted a positive Q3, with revenue hitting $740 million as it expanded its USDC circulation to $73.7 billion.

Circle releases Q3 financial earnings, eyes token launch for Arc Layer 1

Circle released its Q3 report on Wednesday, reporting strong growth across revenue, reserves, and net income amid surging demand for its USDC stablecoin.

The company reported total revenue and reserve income of $740 million for the quarter, up 66% from the same period last year. The reserve income grew 60% YoY to $711 million, driven largely by a 97% increase in average USDC circulation to $67.8 billion — though lower yields on reserve assets partially offset the figure. Other revenues from subscriptions and services jumped to $29 million.

The firm also raised its fiscal-year 2025 outlook for "other revenue" to $90 million to $100 million, up from its prior projection of $75 million to $85 million.

USDC's circulation also expanded sharply, ending the quarter at $73.7 billion, more than double the level recorded a year earlier, while net income jumped 202% to $214 million. Circle says the growth is due to the accelerating adoption of USDC as both a payment instrument and a market infrastructure tool.

CEO Jeremy Allaire stated that the company's performance underscored the growing utility of USDC in global finance. "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," said Allaire.

Since making its public debut in June, USDC adoption has seen significant growth, with its market capitalization increasing from around $61 billion to nearly $76 billion, according to CoinGecko data.

The company, which began trading on the New York Stock Exchange (NYSE) earlier this year, has benefited from stronger demand for stablecoins amid its growing institutional and retail use in global payments and DeFi markets.

Circle noted that it is exploring the launch of a native token for its Arc Layer 1 blockchain, designed to align incentives among developers and institutions participating in its growing ecosystem.

The initiative follows the debut of the Arc public testnet in late October, which has already drawn interest from more than 100 companies across the banking, payments, and digital asset sectors. The network reflects Circle's broader vision to establish programmable financial infrastructure that drives institutional adoption.

Circle's share price has declined by 9% at the time of publication on Wednesday despite its positive Q3 earnings report.