Stablecoin market is scaling. But how about stablecoin the business? Circle's FY 25 results offer clues

Circle's FY 25 results just in. Key numbers 👇

1️⃣ USDC in circulation: $75.3B, +72% YoY

Circle outgrew Tether's growth in stablecoin.

This trend is likely to continue the more US corporates embrace stablecoins.

2️⃣ USDC % on Circle: 17%, +340% YoY

This reduces the cost of distribution for Circle.

The % of USDC distributed via Coinbase remained flat at 24% for Circle.

3️⃣ Reserve return rate: 3.81% at Q4 25 vs 4.49% at Q4 24

Circle makes money on the yield it gets from its reserves.

Interest rate compression depresses Circle's revenue.

4️⃣ Reserve income: $2.64B, +58% YoY

While USDC in circulation grew, the interest rate dropped 10%-15% in 2025. 

Thus the increase in income didn't match the increase in market size 1 to 1.

5️⃣ Total distribution cost: $1.66B, +66% YoY

Distribution cost increased more than revenue, illustrating the costly business of scaling stablecoin issuance business. 

6️⃣ Total operating expense: $1.18B, +250% YoY

The main culprit here is the 3.5x increase in compensation expenses from $263M to $845M, where $556M were stock compensations.

➡️ Key takeaways

- Topline and market size have trended up for circle massively in 2025

- But that did not translate into correspondant sizeable increase in operating income as distribution cost and operating expense outpaced the increase in revenue

- Compared to a net income of $156M in 2024, Circle recorded a $70M loss depsite its stablecoin circulation surging 70%.

Stablecoin may be scaling; stablecoin issuance is a tough business.

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