Circle's stock price has seen significant growth in the past nine months, with a surge of over 35% since June 2025. However, this growth comes at a time when the company is facing challenges related to its stablecoin label.
The company's reliance on interest rates for revenue is being squeezed by declining Federal Reserve rates, and its profit-sharing agreement with Coinbase has been identified as a major issue. The CLARITY Act, which aims to regulate stablecoins, has also put Circle in a precarious position.
To address these challenges, Circle is transforming into a platform-based company, focusing on three main areas: infrastructure, digital assets, and applications. Its Arc blockchain, cross-chain transfer protocol (CCTP), and Circle Payments Network are all part of this strategy.