Circle, the company behind the USDC stablecoin, is planning to introduce a native token for its Arc blockchain, an Ethereum Virtual Machine network designed for enterprise use. This announcement coincides with the release of Circle's Q3 2025 financial results, which reveal a significant surge in profitability.
The Arc testnet, launched in October, has garnered participation from over 100 companies, including Goldman Sachs, BlackRock, and Visa. Circle initially intended to use USDC and other stablecoins for gas fees on the Arc network. However, the company is now considering a native token to encourage network participation, align stakeholder interests, and support the long-term growth of the Arc network. Circle envisions Arc transitioning to a decentralized governance model with geographically distributed validators.
In the third quarter of 2025, Circle's total revenue and reserve income reached $740 million, a 66% increase compared to Q3 2024. Net income soared to $214 million, representing a 202% year-over-year increase. Adjusted EBITDA also saw substantial growth, reaching $166 million, a 78% increase compared to the same period last year. This growth is attributed to higher USDC circulation and the operational leverage inherent in Circle's business model.
The circulation of USDC reached $73.7 billion by the end of the third quarter, marking a 108% year-over-year increase. Minted USDC in Q3 2025 stood at $79.7 billion, while redemptions amounted to $67.3 billion. Circle's stablecoin market share expanded to 29%, a 643-basis point increase, according to CoinMarketCap data. Wallets holding over $10 USDC also increased significantly, reaching 6.3 million, a 77% jump year-over-year.
Circle's revenue growth was primarily driven by reserve income, which reached $711 million, a 60% year-over-year increase. Other revenue streams, including subscriptions, services, and transaction fees, contributed $29 million, a sharp increase compared to the previous year.
However, costs also increased during the quarter. Distribution, transaction, and other costs rose by 74% to $448 million, driven by expanded USDC balances and strategic partnerships. Operating expenses increased by 70% to $211 million, primarily due to higher compensation expenses, including $59 million in stock-based compensation.
Circle's payments network now supports flows in eight countries, with 29 financial institutions fully enrolled and 55 undergoing eligibility reviews. The company's strategic partnerships with Brex, Kraken, Visa, Deutsche Börse, and Finastra have expanded USDC adoption across banking and capital markets.
Looking ahead, Circle raised its 2025 other revenue guidance to $90–100 million and adjusted operating expenses to $495–510 million. The RLDC margin is expected to be around 38%, reflecting higher platform efficiency and growing subscription revenue.
