Circle reported a significant revenue boost in its latest earnings, driven largely by the presale of its Arc tokens for the open blockchain network. The company brought in $182 million from this sale, which contributed to its overall revenue of $865 million for the quarter. However, reserve income decreased by 8% year-over-year, with the return rate falling by 61 basis points to 3.5%. Despite this decline, Circle's CEO Jeremy Allaire emphasized the company's strategic position ahead of the GENIUS Act's implementation in January, which will recognize digital dollars as part of the U.S. financial system.
Circle's stablecoin, USDC, continues to dominate the market, accounting for 79% of all stablecoin transaction volume. The company reported a 49% year-over-year increase in onchain transaction volume to $13.9 trillion, with the average amount of USDC in circulation rising by 8% to $73.3 billion. Chief Financial Officer Jeremy Fox-Geen highlighted the growing adoption of USDC, noting that more economic activity is taking place using digital currencies.
Other revenue sources totaled $207 million, primarily due to the Arc token presale. Analysts from Keefe, Bruyette and Woods noted that this revenue materialized fully in the third quarter, surpassing expectations. William Blair analysts also pointed out that Circle is not yet generating material transaction revenue but anticipate changes as the Arc blockchain transitions to proof of stake.
Circle announced a 5% reduction in its workforce, attributing a one-time $9.1 million restructuring cost in its earnings report. The company also revealed plans to acquire Singaporean payments firm Tazapay, which will expand its global reach and enhance its stablecoin movement capabilities.