Circle: All-In Stablecoin Strategy

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S1 Deep Dive

Circle in one minute

Circle is on a mission to transform the global financial landscape by creating an internet-driven financial system powered by blockchain technology. At a time when traditional banking infrastructure remains deeply rooted in decades-old technology, Circle is pioneering a path toward frictionless value exchange, underpinned by open software and public networks.

The shift began with USDC—Circle’s flagship stablecoin—designed to bring the speed, transparency, and efficiency of the internet to financial transactions. Unlike legacy systems that rely on tightly controlled, permissioned databases, Circle's internet financial system leverages blockchain networks to enable seamless, real-time movement of value—globally and without barriers.

Circle’s journey to reshape finance accelerated with its strategic focus on USDC, abandoning its earlier ventures in crowdfunding and brokerage. Today, USDC is not just a digital currency; it's a bridge between the on-chain and off-chain worlds. With $43.9 billion in circulation across 4.3 million wallets by the end of 2024, it’s become the backbone of on-chain finance, driving commerce and settlement at internet speed.

The existing financial system—though it has driven global growth and lifted billions out of poverty—remains plagued by inefficiencies. Complex settlement processes, high costs, and multi-day transactions are still the norm. Circle envisions a world where financial transactions are as seamless and instant as sending an email.

By building on blockchain rails, Circle is cutting through the inefficiencies of legacy financial systems. USDC functions like a digital dollar, offering near-instantaneous transacting and settlement across borders, at a fraction of the cost. It’s not just a token—it’s a protocol, a foundation for developers to build innovative financial applications that are fast, secure, and transparent.

Circle is not just aiming to build the largest stablecoin network; it’s setting the foundation for a new global financial infrastructure. With blockchain technology as its backbone, Circle’s vision is to make financial transactions as seamless and instant as internet communication—unlocking trillions in trapped capital, enhancing transparency, and bringing financial services to billions more.

Introduction

Circle is reimagining the global financial system with a mission to create frictionless value exchange across borders and economies. Founded on the belief that the advent of blockchain technology can reshape financial infrastructure, Circle is building an internet-based financial ecosystem designed for speed, security, and inclusivity.

At its core is USDC, Circle's flagship stablecoin, which serves as the foundation for seamless digital transactions. Unlike legacy financial systems that rely on outdated, permissioned databases, Circle’s architecture is built on open software and public blockchain networks. This enables value to move faster, cheaper, and with greater transparency—breaking down barriers and bringing financial services to more people and businesses around the world.

The traditional financial infrastructure, rooted in technology from the 1970s and 1980s, has powered economic growth but remains burdened with inefficiencies—multi-day settlements, high costs, and fragmented processes. FinTech innovations have modernized the front end, yet the back end remains tethered to legacy systems. Circle aims to change that by creating an internet financial system that operates with the speed and scalability of the web, unlocking unprecedented levels of financial inclusion and economic prosperity.

Blockchain technology is the backbone of this transformation. Acting as a new base layer for the movement of value, blockchains enable secure, real-time data exchange and transaction processing without the need for centralized intermediaries. This open infrastructure reduces costs, enhances transparency, and accelerates the velocity of money—paving the way for new use cases in finance and commerce. Circle’s vision is to create an ecosystem where money moves at the speed of the internet, driving economic growth and inclusion on a global scale.

As the world transitions from legacy financial systems to blockchain-powered networks, Circle is leading the charge. With USDC as its cornerstone, Circle is building a new financial internet—one that’s open, inclusive, and resilient. From powering cross-border payments to enabling decentralized finance (DeFi) applications, Circle is not just participating in the internet of value; it’s building it.

History

It began in 2013 with a vision to reshape the global financial landscape through the power of blockchain technology.

Back then, the idea of a digital currency seamlessly bridging traditional finance with the open internet was still emerging. Circle co-founders Jeremy Allaire and Sean Neville saw this as a unique opportunity to build the financial infrastructure of the future—a protocol for money that would operate with the same openness and efficiency as the internet itself.

Their ambition was bold: to create an "HTTP for Money," where value could move across borders as easily as information. This vision led to the founding of Circle, and the journey to redefine money for the internet age began.

In 2018, Circle launched its flagship product—USDC, a fully-backed digital dollar. More than just a stablecoin, USDC marked the beginning of a new era in internet-based financial services. Built on public blockchain networks, USDC enabled near-instantaneous transactions, low-cost global transfers, and seamless programmability, making it a preferred choice for developers and enterprises alike.

The momentum continued. By 2025, USDC had powered over $25 trillion in on-chain transactions, becoming a cornerstone of decentralized finance (DeFi) and global commerce. Circle's robust ecosystem, supported by thousands of partners, expanded rapidly, integrating with major payments companies, enterprise technology firms, and financial institutions around the world.

But the journey wasn’t without its challenges. In 2023, rising U.S. interest rates and market volatility led to a temporary dip in USDC’s circulation. The collapse of certain U.S. regional banks further disrupted the market, causing temporary dislocations. Yet, Circle's strong market infrastructure and commitment to transparency saw it through. From 2021 to 2024, Circle minted over $504 billion in USDC and redeemed $464 billion, always maintaining a 1:1 peg with the U.S. dollar.

Circle’s growth has been nothing short of remarkable. With revenue climbing from $15.4 million in 2020 to $1.7 billion in 2024, Circle has proven its resilience and market leadership. Its team, now spanning dozens of countries and 35 U.S. states, is dedicated to building a new internet financial system—one that is open, fast, and secure.

The next chapter for Circle is its transition to becoming a publicly traded company on the New York Stock Exchange. This move represents more than just a milestone—it is a commitment to greater transparency, global reach, and the realization of Circle's vision for an internet-powered financial system. With the regulatory oversight of a U.S.-listed public company, Circle is poised to accelerate its mission of transforming global finance through blockchain technology.

From its bold beginnings in 2013 to its upcoming public debut, Circle’s journey reflects a commitment to innovation, resilience, and the belief that money should move as freely as information on the internet.

Risk factors

Circle operates in a rapidly evolving and highly competitive landscape, facing significant internal and external risks that could impact its growth, profitability, and market share.

1. Intense Competition in the Digital Asset Ecosystem - The digital asset market is highly competitive, with both established financial institutions and new entrants aggressively pursuing market share. Traditional banks, blockchain-native companies, and digital wallet providers are racing to develop new products that challenge Circle’s stablecoin dominance. This competition could pressure Circle’s margins, disrupt its growth trajectory, and drive the need for ongoing innovation to remain competitive.

2. Regulatory Uncertainty and Compliance Challenges - Circle operates in a heavily regulated environment, with financial regulations varying significantly across jurisdictions. Any changes in regulatory requirements, particularly concerning stablecoins, could impact its operations, increase compliance costs, or limit its ability to scale. Furthermore, the introduction of stablecoin-specific legislation could lower market entry barriers, encouraging more competitors to challenge Circle’s position.

3. Dependence on USDC Adoption and Monetisation - Circle’s growth is heavily tied to the adoption and usage of USDC. If user preferences shift toward alternative yield-bearing digital assets like TMMFs or other stablecoins, USDC’s market share could decline. Emerging competitors with innovative features or lower fees could further pressure Circle’s ability to monetize its ecosystem effectively.

4. Vulnerability to Market Shocks and Redemption Pressures - As a digital financial platform, Circle is exposed to market volatility and systemic shocks in the digital asset space. Significant redemption events—like those witnessed during the 2023 U.S. regional banking crisis—could strain Circle’s liquidity and challenge its ability to maintain USDC’s 1:1 dollar peg. Large-scale withdrawals, particularly during market disruptions, could force Circle to liquidate assets under less favorable conditions, impacting its financial stability.

5. Dependence on Banking Partners for Key Operations - Circle’s reliance on banking partners for liquidity and transaction processing introduces additional risks. Any disruption or regulatory pressure on its banking relationships could affect its ability to facilitate USDC transactions seamlessly. Additionally, as traditional financial institutions increasingly enter the stablecoin market, competition for banking relationships may intensify.

6. Exposure to Technological Risks and Blockchain Vulnerabilities - USDC transactions rely on blockchain infrastructure, which is still a developing technology. Issues like smart contract vulnerabilities, network congestion, or governance disputes on underlying blockchains could disrupt Circle’s operations. Security breaches or technical failures in blockchain networks could also undermine confidence in USDC.

7. Risk of Shifting Market Dynamics and Evolving User Preferences - The emergence of new digital asset classes, such as yield-bearing tokens, poses a competitive threat to USDC. If investors increasingly prefer digital assets that offer returns over non-yield-bearing stablecoins, Circle could face declining demand for USDC. Furthermore, market participants exploring decentralized finance (DeFi) alternatives may reduce dependency on USDC for transactions and collateral.

8. Liquidity and Redemption Risks in Extreme Market Scenarios - While USDC is fully backed and redeemable on a 1:1 basis, extreme market scenarios could disrupt redemption processes. High-volume redemption requests during periods of financial stress could challenge Circle’s liquidity reserves. In such cases, Circle may need to liquidate its holdings under adverse conditions, affecting its financial health and market trust.

9. Reputation Risk and Public Perception Challenges - As a leader in the digital asset space, Circle is subject to public scrutiny and market perception risks. High-profile incidents in the broader crypto market, such as exchange failures or regulatory crackdowns, could negatively impact user trust in USDC, even if Circle is not directly involved.

10. Macroeconomic and Geopolitical Risks - Circle’s operations are also sensitive to macroeconomic factors like interest rate fluctuations, inflation, and geopolitical tensions. Changes in global financial policies or international conflicts could disrupt capital flows, impact USDC’s stability, and create regulatory hurdles that limit growth opportunities.

Market Opportunity

The global financial landscape is on the brink of transformation, and Circle is positioned at the forefront of this seismic shift. With the rise of blockchain technology and the advent of the internet financial system, the traditional barriers of cross-border payments, settlement inefficiencies, and centralized controls are being dismantled—paving the way for a faster, more inclusive global economy.

Internet-Native Financial Infrastructure
The opportunity is vast. Circle’s stablecoin network is designed to tap into the full scale of global monetary supply. As developing economies become more interconnected with the global financial marketplace, the demand for frictionless, internet-based transactions is poised to surge. In the United States alone, the velocity of M2 money stock reached 1.39 in Q4 of 2024, according to the Federal Reserve Bank of St. Louis. Circle believes that an internet-native U.S. dollar can accelerate this velocity—unlocking trillions in economic value and driving exponential growth in global GDP.

Transforming Cross-Border Payments
Cross-border transactions remain one of the most friction-laden aspects of the global economy. Traditional banking networks are plagued by high fees, lengthy settlement times, and heavy reliance on intermediaries. Circle’s stablecoins, powered by blockchain, enable near-instantaneous, peer-to-peer transactions at a fraction of the cost. According to McKinsey’s 2024 Global Payments Report, annual international remittances and cross-border payments revenue stood at approximately $288 billion. Circle aims to disrupt this market by offering seamless, borderless payment solutions that are faster, cheaper, and more secure.

Digital Assets and Tokenization
The global digital asset market reached $3.3 trillion in 2024, a testament to the growing acceptance of blockchain as a financial backbone. Circle’s USDC is positioned as the primary medium of exchange within this ecosystem. Beyond cryptocurrencies, the tokenization of traditional assets—ranging from money market funds (TMMFs) to real estate—offers a new frontier of growth. With USDC at its core, Circle is enabling programmable, real-time asset transactions that extend far beyond conventional financial boundaries.

Programmable Money and Commerce
The ability to program digital money introduces new possibilities in commerce. Smart contracts allow for automated, transparent transactions that streamline everything from supply chain settlements to payroll distribution. These innovations are expected to drive the next wave of growth in e-commerce, DeFi, and business-to-business payments, with programmable stablecoins acting as the underlying infrastructure for instant, secure transactions.

Consumer Payments Reimagined
Just as the internet revolutionized communication, the internet financial system is set to redefine consumer payments. With USDC, individuals can transfer value instantly, securely, and with minimal fees—whether for P2P transfers, online purchases, or cross-border payments. McKinsey’s 2024 Global Payments Report valued global consumer payments revenue at $2.4 trillion, highlighting a massive addressable market for internet-native financial solutions.

Modernizing Capital Markets
Stablecoins like USDC are laying the groundwork for blockchain-driven capital markets. According to S&P Global, global capital markets generated $180 billion in revenue in 2023. Circle sees an opportunity to revolutionize settlement and transaction processes, making them faster, more transparent, and programmable. Tokenized securities and blockchain-based trading infrastructure could unlock unprecedented liquidity and market efficiency.

New Financial Products and Internet-Native Capital Markets
The internet financial system is not just reshaping existing markets—it’s creating new ones. From tokenized real estate to blockchain-based lending markets, Circle is building the infrastructure to support novel capital products that leverage programmable money and blockchain transparency. As markets evolve, Circle is poised to be a cornerstone of this new financial architecture.

With USDC as its backbone, Circle is poised to capture market share across remittances, digital assets, programmable money, and capital markets—ushering in a new era of global economic connectivity.

Product

Circle operates one of the largest and most widely used stablecoin networks in the world—anchored by its flagship stablecoins, USDC and EURC. With a platform-first approach, Circle is not just issuing digital currencies; it's building the financial infrastructure that powers the internet financial system, enabling seamless, near-instant transactions across the globe.

Circle Stablecoins

At the core of Circle’s ecosystem are its two major stablecoins: USDC (U.S. dollar-denominated) and EURC (Euro-denominated). These digital currency tokens are issued natively on blockchain networks, fully backed by highly liquid, price-stable cash and cash equivalents. Each unit of USDC and EURC is redeemable on a one-for-one basis for U.S. dollars and euros, respectively—ensuring stability, security, and liquidity for users worldwide.

Circle stablecoins are designed to operate at the speed of the internet, facilitating near-instantaneous settlement with minimal transaction costs. Unlike traditional banking systems that rely on intermediaries, Circle stablecoins allow value to move directly across blockchain networks, making global transactions as easy as sending an email. As of March 28, 2025, USDC alone has powered over $25 trillion in onchain transactions—a testament to its growing adoption and reliability.

Through hundreds of institutional and retail partners, Circle stablecoins are integrated into digital wallets, e-commerce platforms, trading desks, and financial applications—touching over 600 million users globally. This extensive reach is driven by the transparency and regulatory compliance that Circle has maintained since its inception.

Circle Tokenized Funds

To meet the evolving demands of digital finance, Circle has expanded its product suite with Circle Tokenized Funds. These represent a new class of regulated, yield-bearing investments optimized for use as collateral in digital asset markets. Unlike traditional money market funds, Circle’s USYC (Tokenized Money Market Fund) is issued onchain, enabling high-speed interoperability and seamless liquidity transitions.

Launched through the acquisition of Hashnote in early 2025, USYC provides instant convertibility into USDC, allowing traders to easily switch between yield-bearing assets and stablecoins. This integration enhances capital efficiency and reduces counterparty risks during margin trading on digital asset platforms.

USYC is built on Circle’s robust blockchain infrastructure, supporting near-instant settlement across multiple chains. With $1.6 billion in assets under management as of December 31, 2024, USYC is the largest onchain TMMF globally, underscoring Circle's commitment to pioneering next-generation financial products.

Circle Liquidity Services

Circle’s Liquidity Services streamline the minting, reserving, and redemption of USDC and EURC for institutional clients through Circle Mint. Designed exclusively for institutions, Circle Mint provides seamless access to Circle stablecoins, enabling large-scale transactions across more than 185 countries.

Institutions like exchanges, payment processors, and financial service providers leverage Circle Mint to mint and redeem stablecoins at scale, with robust support for international wire transfers and domestic bank transactions. Clients benefit from real-time transaction processing, transparent fee structures, and deep liquidity pools—enabling them to navigate global markets with precision and speed.

Circle Developer Services

To accelerate blockchain adoption, Circle offers a comprehensive suite of Developer Services that make it easy for enterprises to build, deploy, and operate decentralized applications (dApps) and digital financial products.

• Circle Wallets – Managed wallet services that allow developers to integrate secure, onchain wallets into applications. These wallets are optimized for seamless USDC transactions, enabling consumer-grade user experiences with familiar login methods like Google or Apple ID. As of December 31, 2024, over 10 million wallets have been deployed onchain using Circle Wallets.

• Circle Contracts – A no-code platform for deploying smart contracts that power programmable money and tokenization. Developers can easily create contracts for payments, NFTs, and more, while leveraging Circle's security and cross-chain compatibility.

• Circle Paymaster – Simplifies gas fee payments by allowing users to pay blockchain transaction costs in USDC instead of native tokens like ETH or SOL. Launched in January 2025, Paymaster eliminates the complexity of managing multiple assets for end-users.

• Circle CCTP (Cross-Chain Transfer Protocol) – A groundbreaking solution for cross-chain transfers of USDC. Unlike traditional bridging methods, CCTP enables seamless movement of USDC across supported blockchains with minimal cost and maximum security. From its launch in 2023 to December 31, 2024, CCTP has facilitated $24.7 billion in transfers—setting the standard for blockchain interoperability.

  

Circle's platform is more than just a collection of financial products—it is an interconnected ecosystem designed to redefine global value exchange. From instant cross-border transactions to decentralized financial applications, Circle is laying the digital infrastructure for a frictionless, internet-native financial system.

Through vertical integration, regulatory compliance, and blockchain scalability, Circle is leading the next evolution in global finance, empowering businesses, developers, and institutions to participate in the open financial ecosystem of the future.

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Business Model

Circle’s business model is engineered around four core pillars: Stablecoin Monetization, Infrastructure Services, Developer Ecosystem, and Global Financial Integration. This strategy leverages its leadership in blockchain-native financial services, extending beyond simple transactions to redefine global value exchange.

Here’s how it works—and why it scales in a rapidly evolving internet financial system.

Stablecoin Monetization
At the heart of Circle’s business model are its flagship stablecoins—USDC (U.S. dollar-denominated) and EURC (Euro-denominated). Unlike traditional financial assets, Circle stablecoins operate with near-instantaneous settlement, minimal fees, and global accessibility, effectively bridging the fiat and digital economies.

Circle mints and redeems stablecoins for institutional clients through Circle Mint, a platform that supports on-demand creation and conversion of USDC and EURC. Every stablecoin issued is backed by highly liquid, price-stable reserves held with top financial institutions, ensuring 1:1 redemption with fiat currency. This transparent and fully backed model has established USDC as the largest regulated payment stablecoin in circulation.

Stablecoins serve as the economic engine of Circle's business, driving revenue through two primary streams:

• Reserve Income – Circle earns yield on the assets held in reserves backing USDC and EURC. This income forms the backbone of Circle’s revenue, contributing between 95% and 99% of total revenue from 2022 to 2024.

• Redemption Fees – For large-scale redemptions, Circle charges a tiered fee structure for expedited transactions, adding a premium monetization layer.

This reserve-backed model scales seamlessly with network growth: more USDC in circulation means greater reserves, which in turn drives higher yield and stronger financial stability.

Infrastructure Services
Circle’s Infrastructure Services are designed to power seamless financial transactions over blockchain networks. These include minting, liquidity provisioning, and foreign exchange services. By building a robust network of on- and off-ramps from fiat to blockchain assets across 185+ countries, Circle reduces friction for institutions to participate in the internet financial system.

Key offerings include:

• Circle Mint – A streamlined platform for institutional minting and redemption of USDC and EURC.

• Circle Liquidity Services – Facilitates real-time conversion between digital and fiat currencies, enabling seamless cross-border transactions.

This infrastructure underpins the Circle stablecoin network, ensuring global liquidity and efficient capital flow, while monetizing each transaction through fees and spreads.

Developer Ecosystem
Circle’s Developer Ecosystem is a core component of its growth strategy. By abstracting away the complexities of blockchain development, Circle enables third-party developers to build, deploy, and operate decentralized applications (dApps) seamlessly.

The Developer Services Suite includes:

• Circle Wallets – Onchain wallets that integrate directly into web and mobile apps, simplifying blockchain-based transactions.

• Circle Contracts – Pre-built smart contract templates that streamline tokenization and payment automation.

• Circle Paymaster – Allows developers to pay gas fees in USDC, eliminating the need for native blockchain tokens.

• Circle CCTP (Cross-Chain Transfer Protocol) – Enables seamless USDC transfers across multiple blockchain networks.

These developer tools not only fuel the growth of the Circle stablecoin network but also drive network fees through increased transaction volume, wallet creation, and smart contract deployments.

Global Financial Integration
Circle’s vision extends to global financial integration, where USDC and EURC operate as frictionless digital currencies accessible to anyone with an internet connection. Through strategic partnerships with leading financial institutions, fintech companies, and payment processors, Circle aims to redefine cross-border payments, remittances, and decentralized finance (DeFi).

To drive this, Circle partners with major global platforms, including:

• Visa for global merchant settlements.

• Mastercard for direct USDC payments in over 80 countries.

• Coinbase and other digital asset exchanges for seamless minting and redemption.

This collaborative approach accelerates the adoption of internet-native money, enabling faster and more secure financial transactions that extend the reach of traditional banking infrastructure.

Flywheel of Growth
Circle’s business model is designed to self-reinforce and compound value:

• More USDC in circulation → Larger reserves → Higher reserve income

• More onchain transactions → Increased fees → Greater developer adoption

• More developers building on Circle → Broader ecosystem → More end-user activity

This network effect drives a flywheel of adoption, liquidity, and economic activity, positioning Circle as the leading platform for internet-based financial services.

As Circle expands its platform—integrating Tokenized Funds (USYC), launching new developer tools, and extending its onchain financial services—it is building a fully integrated, blockchain-native financial ecosystem. With transparent reserves, scalable technology, and global reach, Circle is set to redefine how money is moved, stored, and transacted in the digital era.

Management Team: 

Jeremy Allaire – Co-Founder & CEO
Jeremy Allaire co-founded Circle in 2013 and currently serves as Chief Executive Officer and Chairman. A seasoned technologist and entrepreneur, Jeremy previously co-founded and led Brightcove as CEO, was Entrepreneur in Residence at General Catalyst, and served as Chief Technology Officer at Macromedia. His journey into tech began with co-founding Allaire Corporation, where he served as CTO. Jeremy holds a B.A. in Political Science and Philosophy from Macalester College.

Jeremy Fox-Geen – Chief Financial Officer
Jeremy Fox-Geen joined Circle as Chief Financial Officer in May 2021. He brings deep expertise in financial management, having previously served as CFO for iStar and Safehold from 2020 to 2021 and as CFO for McKinsey & Company, North America from 2016 to 2020. Jeremy’s career also includes senior roles at PricewaterhouseCoopers, Citigroup, and McKinsey & Company.

Heath Tarbert – President
Heath Tarbert became Circle’s President in January 2025 after serving as its Chief Legal Officer since July 2023. Heath brings extensive experience in global financial policy, law, and regulatory oversight. He previously served as the Chief Legal Officer of Citadel Securities (2021–2023) and was the 14th Chairman and Chief Executive of the U.S. Commodity Futures Trading Commission (CFTC) from 2019 to 2021. His career includes pivotal roles as Assistant Secretary of the Treasury, U.S. Executive Director of the World Bank Group, Associate White House Counsel, and a law clerk at the U.S. Supreme Court.

Nikhil Chandhok – Chief Product and Technology Officer
Nikhil Chandhok has served as Circle’s Chief Product and Technology Officer since January 2025, after previously holding the position of Chief Product Officer from February 2022 to December 2024. Before joining Circle, Nikhil held senior product development roles at Meta, where he led key projects in mobile devices, streaming video, AI, and augmented reality. His earlier career includes pivotal roles at Google, YouTube, and Microsoft, contributing to the development of tech-forward products and software innovations.

Investment

Circle's journey from a blockchain pioneer to a global leader in the digital financial system has been powered by strategic investments from some of the most influential financial institutions and venture capital firms. Over the years, Circle has attracted significant capital to scale its technology, expand its product offerings, and accelerate the adoption of USDC as the standard for digital dollar transactions on the internet.

Early Investors

Goldman Sachs
In 2015, Goldman Sachs led a $50 million investment round in Circle, marking one of the earliest major investments by a global financial institution into blockchain technology. At the time, The New York Times described this as a pivotal moment that "should help solidify Bitcoin’s reputation as a technology that serious financial firms can work with." Goldman’s strategic backing not only provided capital but also lent institutional credibility to Circle’s vision of building an internet-based financial system.

Series D Funding (2016)
Circle continued its momentum with a $60 million Series D round in June 2016, attracting new and existing investors who recognized the company’s potential to transform global finance through blockchain infrastructure. This round further solidified Circle’s position as a leader in the digital assets space, allowing it to scale its operations and develop its stablecoin ecosystem.

USDC Launch & $110 Million Funding (2018)
The creation of USDC in 2018 was a transformative step for Circle, made possible through a $110 million venture capital round. This funding enabled the launch of USDC as an Ethereum-based stablecoin, fully backed by U.S. dollars. Since then, USDC has become one of the most widely adopted stablecoins globally, powering over $25 trillion in on-chain transactions as of March 2025.

Strategic Acquisitions

Crowdcube Investment (2021)
In November 2021, Circle led a $13.5 million funding round for Crowdcube, a leading crowdfunding platform. This strategic investment aligned with Circle’s broader mission of democratizing access to financial services and expanding its reach within digital finance.

$400 Million Funding Round (2022)
In April 2022, Circle announced a $400 million funding round, with investments from some of the world’s largest financial institutions, including BlackRock, Fidelity Investments, Marshall Wace LLP, Fin Capital, and Clidenor Capital. This capital infusion was aimed at scaling USDC’s infrastructure, deepening liquidity, and driving broader adoption across institutional markets. BlackRock's involvement also included a strategic partnership to explore capital market applications for USDC, signaling the growing institutional confidence in Circle's stablecoin ecosystem.

Public Market Transition

The cumulative investments have positioned Circle as a frontrunner in blockchain-based finance, enabling it to:

• Expand the global footprint of USDC and EURC through Circle Mint and strategic bank partnerships

• Integrate USDC into global financial markets, enhancing cross-border payments and digital asset trading

• Launch new products like USYC through the acquisition of Hashnote, further extending its reach into tokenized money market funds

• Build out developer infrastructure with Circle Developer Services, enhancing blockchain application development

These investments reflect not just capital infusion but strategic alignment with Circle’s mission to build an open, internet-based financial system that rivals traditional banking infrastructure. As Circle continues to scale and prepare for its public listing, the foundational investments by global financial giants serve as validation of its long-term vision for the programmable internet of money.

Ripple power move

Ripple, the blockchain-based payment giant, is reportedly making a bold play to acquire Circle, the issuer of USDC—the world’s second-largest stablecoin with a market cap of approximately $61 billion. Initial offers from Ripple were reported at $4–5 billion, which Circle deemed insufficient. Recent speculations hint that Ripple may have raised its bid to $10 billion, although both companies have yet to confirm these figures.

This strategic move marks a significant shift for Ripple, expanding its ambitions beyond XRP and cross-border payments into the rapidly growing stablecoin sector. The acquisition attempt follows Ripple's $1.25 billion purchase of prime brokerage Hidden Road, reinforcing its commitment to institutional growth. Ripple's own stablecoin, RLUSD, currently holds a modest $317 million market cap, indicating a clear appetite for scaling its influence in the stablecoin space.

Meanwhile, Circle is gearing up for an IPO on the New York Stock Exchange under the ticker "CRCL," led by JPMorgan and Citigroup. Circle posted $1.67 billion in revenue in 2024, generating $156 million in profit. Despite allocating 60% of its revenue to distributors—primarily Coinbase—Circle's strong institutional positioning, backed by partnerships with BlackRock and BNY Mellon, enhances its attractiveness as an acquisition target. Will Ripple stretch its bid to the rumored $20 billion? Acquisition premiums typically hover around 20–30%, suggesting a more realistic figure of $6–6.5 billion. Ripple's interest aligns with its strategy to dominate institutional payments. Its acquisition of Metaco for $250 million and partnerships with emerging market governments for CBDCs underscore this direction.

A successful acquisition of Circle would position Ripple as a dominant force in stablecoins, blending its existing payment infrastructure with USDC's institutional reach, setting the stage for a new era in blockchain-based financial services.

Competition

The global stablecoin market is rapidly evolving, driven by innovations in digital finance and the growing acceptance of blockchain-based payments. Within this dynamic landscape, Circle has emerged as the second-largest stablecoin issuer globally and the largest regulated payment stablecoin as of December 31, 2024, commanding 24% of the stablecoin market, according to CoinMarketCap. USDC, Circle's flagship product, is 100% backed by fiat-denominated reserves and benefits from robust primary liquidity through a well-developed network of banking partners, setting the industry benchmark for transparency, security, and operational resiliency.

Key Competitors

The competitive landscape for Circle is segmented into two main categories:

1. Offshore, Unregulated Stablecoin Issuers

   • The largest competitor in this category is USDT (Tether), issued by Tether Limited, an El Salvador-based affiliate of China’s Bitfinex Ltd. Tether remains the largest USD-backed stablecoin by circulation, with deep liquidity across global crypto markets. However, USDT operates outside the regulated frameworks Circle adheres to, presenting both opportunities and risks in terms of transparency and reserve validation.

   • Offshore stablecoins often leverage lax regulatory environments, enabling rapid market growth but raising concerns over security, reserve transparency, and regulatory compliance. Circle’s emphasis on regulatory alignment and transparency serves as a competitive differentiator in contrast to these offshore issuers.

2. U.S.-Based Regulated Stablecoin Issuers

   • Circle faces direct competition from Paxos, which issues white-labeled stablecoins, including PayPal USD, integrated into PayPal’s wallet products. Although its market share remains limited, PayPal’s global consumer base represents a significant growth opportunity, particularly as it expands into blockchain-based payments.

   • Other U.S. stablecoin issuers include Gemini Dollar (GUSD) and TrueUSD (TUSD), which similarly aim to capitalize on regulated, fiat-backed digital currency issuance. However, neither has achieved the market penetration or institutional adoption seen with USDC.

Alternative Payment Systems

While Circle’s core competition is rooted in stablecoins, the company also contends with traditional and emerging payment systems that are gradually integrating blockchain technology.

• Real-Time Payments (RTP) and FedNow, launched by the Federal Reserve, represent attempts to modernize legacy banking infrastructure for instant transactions. While these systems provide real-time settlement, their regional limitations and reliance on traditional banking rails contrast with the borderless and programmable nature of USDC.

• Major financial institutions like J.P. Morgan have also expanded into blockchain for cross-border payments and private stablecoin issuance, potentially signaling new forms of competition. However, these efforts are typically limited to closed-loop networks, lacking the open, decentralized structure of USDC.

Rise of Yield-Bearing Digital Assets

One of the most significant competitive shifts in 2024 was the rise of Tokenized Money Market Funds (TMMFs). Major financial institutions, including BlackRock and WisdomTree, have launched on-chain TMMFs that offer yield while maintaining liquidity, capturing market share from non-yield-bearing stablecoins like USDC.

Traders are increasingly favoring TMMFs as collateral in margin trading due to their yield potential, especially in high-interest-rate environments. To counteract this shift, Circle acquired Hashnote in early 2025, launching USYC as a tokenized money market fund designed for blockchain interoperability. This strategic acquisition allows Circle to provide instantaneous conversion between TMMFs and USDC, maximizing capital efficiency and minimizing execution risks.

The Threat of CBDCs

The development of Central Bank Digital Currencies (CBDCs) poses both competitive threats and partnership opportunities for Circle. Countries like China and Sweden have already launched pilot programs, while others, including the United Kingdom, are exploring CBDC implementations.

Unlike stablecoins, which operate on open networks, CBDCs are likely to be tightly regulated and controlled by central banks, potentially limiting Circle's penetration in markets where CBDCs become the standard for digital transactions. However, Circle’s emphasis on interoperability and integration with global financial systems positions it as a potential partner for CBDC infrastructure in jurisdictions prioritizing blockchain innovation.

Coinbase Partnership

Circle’s strategic collaboration with Coinbase has been instrumental in expanding USDC adoption. Established through the Centre Consortium in 2018, the partnership aimed to co-govern USDC’s issuance and intellectual property. In August 2023, the relationship evolved under a Collaboration Agreement, granting Circle sole governance over USDC while providing Coinbase with a minority equity stake in Circle.

Key highlights of the partnership include:

• Distribution and Liquidity: Coinbase facilitates USDC buy and sell operations across its platform, expanding liquidity and global access.

• Multi-Blockchain Support: Coinbase supports USDC transactions on various blockchains, enhancing cross-chain interoperability.

• Public Policy Advocacy: Both companies actively contribute to public policy discussions, advocating for blockchain-friendly regulatory frameworks.

The collaboration is structured to incentivize Coinbase based on the volume of USDC held and transacted on its platform, aligning its growth objectives with Circle’s network expansion.

Circle’s emphasis on regulatory compliance, transparency, and interoperability gives it a strategic edge over offshore stablecoin issuers. Simultaneously, its developer-focused platform and partnerships with financial institutions like Visa, Stripe, MoneyGram, and Grab help solidify its role as a trusted financial infrastructure provider.

As global digital asset markets continue to evolve, Circle’s robust product portfolio, regulatory alignment, and strategic partnerships position it not only to compete but to lead the internet financial revolution.

Financials

Circle's financial performance reflects its growing presence in the emerging internet financial system and its strategic positioning within the stablecoin ecosystem. The company's revenue and reserve income surged to $1.68 billion in FY2024, marking a 16% increase from $1.45 billion in FY2023. This growth is largely attributed to expanding USDC circulation, a higher reserve return rate, and strategic global partnerships that bolstered transaction volumes.

Revenue Breakdown

Circle's revenue is predominantly derived from reserve income, which reached $1.66 billion in FY2024, up from $1.43 billion in FY2023. This growth was driven by a 5.0% reserve return rate, a significant rise from 4.7% in the previous year, reflecting effective treasury and cash management.

Other revenue streams, including transaction fees and developer services, contributed an additional $15.2 million in FY2024. Although modest in comparison to reserve income, these segments are expected to grow as Circle expands its blockchain-based financial infrastructure and developer ecosystem.

USDC Circulation and Market Share

As of December 31, 2024, USDC in circulation stood at $43.9 billion, representing a 24% market share of the global stablecoin market. This places USDC as the second-largest stablecoin, with a strategic edge in regulatory compliance and transparency. Circle's focus on fiat-backed reserves and global partnerships with Visa, MoneyGram, and Coinbase have been instrumental in solidifying USDC's market position.

Key Metrics

Despite a robust revenue climb, net income declined by 41.8% YoY, landing at $156 million in FY2024, down from $268 million in FY2023. This dip is primarily due to increased distribution costs and strategic investments in Circle's global expansion and blockchain infrastructure.

Profitability and Margin Analysis

Circle's adjusted EBITDA for FY2024 was $285 million, down from $395 million in FY2023. The decline in profitability reflects heightened distribution costs, which reached $1.01 billion, alongside expanded R&D investments and marketing expenditures aimed at global market penetration and developer adoption. Nevertheless, Circle's gross margins remain solid, driven by the cost-efficient nature of blockchain-based transactions and fiat-backed reserves.

Cash Flow and Liquidity Position

Circle's liquidity remains robust, with cash and cash equivalents totaling $750.9 million and $43.9 billion in cash and equivalents segregated for stablecoin holders as of December 31, 2024. Operating activities generated $344.6 million in net cash, reflecting Circle's ability to drive liquidity through its blockchain-based financial ecosystem.

Moreover, Circle raised $19.45 billion through stablecoin deposits, showcasing the strong market confidence in USDC's stability and liquidity. Investments in blockchain infrastructure, global partnerships, and Circle's developer ecosystem are expected to continue driving growth and market share expansion in the coming years.

Closing thoughts

Circle Internet Group is strategically positioned to drive the adoption of stablecoins in the global financial ecosystem. Its robust reserve structure, transparent operational model, and strategic partnerships with leading financial institutions like Visa, Stripe, MoneyGram, and Grab reinforce its market position. With USDC circulation reaching $43.9 billion by the end of 2024, Circle has solidified its role as a major player in the internet financial system.

Bull Case: Circle’s growth trajectory is anchored by increasing global adoption of USDC, expanding blockchain interoperability, and strategic alliances that deepen market penetration. The launch of CCTP V2 and collaborations with Binance and Coinbase are expected to further increase liquidity and mainstream acceptance. Circle’s proactive regulatory alignment also positions it as a leader in compliant, fiat-backed stablecoin solutions—setting the stage for future growth as more financial institutions and governments embrace blockchain-based transactions.

Bear Case: Despite its strong position, Circle faces competition from offshore, unregulated stablecoin issuers and U.S.-based regulated digital assets. Additionally, macroeconomic uncertainties, fluctuating interest rates, and evolving regulatory landscapes could impact its reserve income and market share. Furthermore, the SVB incident in March 2023 revealed vulnerabilities in Circle's banking relationships, which may affect USDC redemption confidence. Competitors like Tether (USDT) continue to dominate market share, presenting challenges for Circle’s expansion efforts.

Overall, Circle’s commitment to regulatory compliance, strategic partnerships, and blockchain-based financial infrastructure gives it a distinct advantage. However, its ability to scale in a rapidly evolving digital asset ecosystem while navigating regulatory pressures will be crucial for long-term success.

Here is my interview with Renan Devillieres, the CEO of OSS Ventures. Renan has a wealth of experience in areas such as manufacturing operations, SaaS, and venture capital.

In this conversation, Renan and I discuss:

• How does the startup studio model at OSS Ventures work?

• SaaS adoption in manufacturing has been slow compared to other industries. What’s driving the shift now?

• What are the key traits Renan look for when building teams at OSS Ventures?

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