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- USDC circulation hit $61.3 billion in Q2, marking a 90% annual growth.
- Circle completed a $1.2 billion IPO, securing $583 million in net proceeds.
- The company launched key products, including Arc blockchain and Circle Payments Network.
Circle Internet Group ended the second quarter of fiscal year 2025 with record stablecoin performance. USDC in circulation reached $61.3 billion, a 90% increase compared to last year. By August 10, circulation climbed further to $65.2 billion.
Total revenue and reserve income increased 53% year-over-year to $658 million. Reserve income increased to $634 million as a result of increased USDC balances, despite a slight decrease in return rates. Other revenue increased significantly by 252% as a result of better subscription, service, and transaction income.
Net loss was reported to be $482 million. This was caused primarily by IPO-related non-cash charges worth $591 million, consisting of stock-based compensation of $424 million and changes in convertible debt value worth $167 million. 52% growth was seen in adjusted EBITDA, which reached $126 million, demonstrating operationally strong performance despite net loss.
GENIUS Act Establishes Federal Stablecoin Framework
Circle finished its initial public offering of $1.2 billion during June. The sale of 19.9 million newly issued Class A shares for $31 apiece produced net proceeds of $583 million, after subtracting underwriting fees but before issuance expenses. The quarter also included key policy developments.
The GENIUS Act was enacted, establishing a federal framework for payment stablecoins. Compliance strategy of Circle is highly compatible with requirements of the law, enhancing its status as a regulated issuer. Prior to IPO, the company dedicated 2,682,392 Class A shares to its Circle Foundation as a part of its international social impact commitment through the Pledge 1% movement.
Circle Gateway Removes Need for Traditional Bridging
Circle unveiled the Circle Payments Network in May. It is a platform that allows payment settlement through stablecoins and has over 100 institutions lined up already. Four corridors are live, with several more expected before year-end.
In July, it introduced Circle Gateway, an instant cross-chain USDC liquidity service that doesn’t bridge or preposition funds. It expanded collaborations during the period with Binance, Corpay, FIS, Fiserv, and OKX. These partnerships look to extend USDC accessibility and enhance infrastructure for payments.
And incorporate stablecoin tech in mainstream finance. The company also introduced Arc, its brand-new Layer-1 blockchain that is aimed for stablecoin finance, payments, and capital markets. Arc will have sub-second settlement, an FX engine, and privacy features. It will release its public testnet this autumn.
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