Circle's Transformation: A New Path for Revenue Growth

Circle's stock price has been on a rollercoaster ride since its IPO in June 2025. The company's revenue is being squeezed by declining interest rates, which are reducing the interest income Circle earns from its reserve accounts. At the same time, the profit-sharing structure with Coinbase is also eating into Circle's profits.

To address these challenges, Circle has launched several initiatives to transform itself into a three-layered platform. The infrastructure layer will be provided by Arc, Circle's own Layer 1 blockchain that has already processed over 150 million transactions in just 90 days. CCTP (Cross-Chain Transfer Protocol) will enable seamless cross-chain liquidity management.

The asset management layer will consist of USDC and USYC, a tokenized money market fund with $1.6 billion in assets under management. The application entry points will be provided by CPN (Circle Payments Network), which connects banks, payment service providers, and businesses to the same network, and StableFX, which allows institutions to conduct 24/7 stablecoin forex pair trading.