Rapid News Brief
Circle Internet Group reported Nov. 4 that revenue from an ARC token presale helped lift third-quarter results despite a decline in income earned on its stablecoin reserves.
The USDC issuer reported total revenue and reserve income of $865 million, up 17% from a year earlier, and net income from continuing operations of $226 million, up 5%, according to its SEC-filed earnings release.
Token revenue offsets lower reserve income
Reserve income fell 8% to $658 million. Circle attributed the decline primarily to a lower return on reserves, partly offset by growth in average USDC circulation. Its reserve return rate was 3.5%, down 0.61 percentage points from a year earlier.
Other revenue rose to $207 million, including $182 million from the ARC token presale. That income is separate from the returns Circle earns on assets backing USDC.
CoinDesk also reported the token-sale contribution and the increase in transaction activity. Circle said USDC transactions recorded on blockchains totaled $13.9 trillion during the quarter, up 49%.
Average USDC circulation rose 8% to $73.3 billion. End-of-quarter circulation was $73.9 billion, essentially unchanged from a year earlier. These are measures of stablecoin balances, not company revenue.
Workforce reduction and payment expansion
Circle disclosed about $9.1 million in quarterly restructuring expenses associated with an approximately 5% workforce reduction. The expenses included severance, notice-period payments, benefits and related costs.
Total operating expenses rose 16% to $245 million. Circle cited higher administrative, depreciation, technology infrastructure and marketing expenses, partly offset by lower stock-based compensation.
Circle also said it had signed an agreement to acquire Singapore-based cross-border payments platform Tazapay. Circle expects the acquisition to close in 2027, subject to regulatory approvals. It is not a completed purchase.
Circle said Tazapay has local payout connections covering more than 100 markets and a network of more than 60 banking and financial technology partners.
Circle left its published guidance unchanged. Its results show why the sources of revenue matter alongside payment activity: ARC token sales supported the quarter while lower reserve returns weighed on another major income stream.