CONNECT WITH US
Fintech

Fintech

Circle’s $13.9 Trillion Stablecoin Paradox: More Payments, Less Profit Per Dollar

PYMNTS – Fintech logo

Published on

Add as a preferred source on Google
Circle’s $13.9 Trillion Stablecoin Paradox: More Payments, Less Profit Per Dollar

Circle’s USDC captured 79% of stablecoin transaction volume, yet circulation remained flat and reserve income fell 8%. Moving more money isn’t necessarily making Circle more money.

The earnings boom comes with a margin squeeze: Circle’s $865 million in revenue included $182 million from an Arc token presale, while costly Binance and Hyperliquid distribution deals threaten profitability. Growth is increasingly expensive to secure.

The next stablecoin battle is over money that stays put: Circle’s payments network is scaling rapidly, but its long-term economics depend on turning transaction volume into recurring fees and sticky corporate treasury balances — not just faster settlements.

Circle’s stablecoin business has a problem most payments companies would envy. Its money is moving faster than its earnings can keep up.

Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

Per the company’s third quarter 2026 results, announced Wednesday (Nov. 4), Circle’s USDC stablecoin processed $13.9 trillion in on-chain transactions during the third quarter, up 49% year over year, giving Circle 79% of stablecoin transaction volume on roughly 27% of circulating supply. Yet the amount of USDC outstanding barely budged, while the company’s core reserve income fell 8%.

That disconnect is becoming a defining economic question for the stablecoin industry. Digital dollars are increasingly useful for moving money, but the companies issuing them still make much of their money when those dollars stay put.

Circle’s third-quarter results suggest that the next phase of stablecoin competition will be fought less over transaction volume than over who captures the economics surrounding it.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.