The news: Circle reported $658 million in total revenues and reserve income in its first quarterly earnings as a public company, amounting to 53% growth YoY.

USDC in circulation also jumped 90% YoY to 61.3 billion by the end of the quarter. Net losses hit $482 million, which largely accounted for IPO-related non-cash charges totalling $591 million.

Circle’s notched significant accomplishments within the last quarter:

• A blockbuster $1.3 billion IPO
• The kick-off of Circle Payments Network in May 
• New and deepened partnerships with Binance, Corpay, FIS, Fiserv, and OKS 

What’s next? To broaden its dominance, Circle’s new pursuit, Arc—a proprietary Layer-1 blockchain for stablecoin finance—could help make USDC easier to use. 

As a full-stack platform for stablecoin payments, foreign exchange, and capital market applications, Arc could help propel more engagement with USDC from incumbents and crypto traders and chip way at industry leader Tether, which holds 67% of the stablecoin market to Circle’s 26%, per CryptoQuant.

Our take: Circle’s early mover status and the newly passed GENIUS Act are working in the stablecoin issuer’s favor. 

Circle anticipates a 40% annual compound growth rate for USDC. If it can establish the most efficient and easy-to-use infrastructure for the nascent stablecoin industry, it can garner lasting loyalty from financial institutions.

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