Circle's Financial Outlook and DeFi Risks Exposed

Circle, a leading stablecoin issuer, has seen its financial performance come under scrutiny as the company transitions from a high-yield reserve business to a broader payments platform.

According to a recent report by Coin Metrics, Circle posted approximately $2.7 billion in revenue for fiscal year 2025, a 64% year-over-year increase driven almost entirely by interest earned on USDC reserves. The company's circulating supply reached $75.3 billion by year-end, holding a steady 28% share of the stablecoin market.

The report highlights the critical variable of Circle's revenue-sharing agreement with Coinbase, which is set to renew in August 2026. Under current terms, Coinbase receives all interest on USDC held on its platform plus half the interest earned elsewhere, capturing roughly 51% of gross reserve income in 2025.