---
title: "Circle 4Q25 First Take: Given USDC supply and disclosed reserve yields, roughly 95% of interest inco"
description: "Circle 4Q25 First Take: Given USDC supply and disclosed reserve yields, roughly 95% of interest income is predictable. This keeps CRCL’s share price largely tracking USDC, effectively tethered to rate"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/38880497.md"
published_at: "2026-02-25T12:47:58.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Circle 4Q25 First Take: Given USDC supply and disclosed reserve yields, roughly 95% of interest inco

**Circle 4Q25 First Take:** Given USDC supply and disclosed reserve yields, roughly 95% of interest income is predictable. This keeps CRCL’s share price largely tracking USDC, effectively tethered to rate-cut expectations and shifts in crypto policy.

The delta versus expectations in the print lies in non-interest income, internal operating efficiency, and the medium/long-term goals embedded in guidance. These are the true swing factors.

1) Actual Q4 beat, driven by a sharp step-up in 'other income' that accelerated QoQ. Public USDC market-cap data were distorted by outsized crypto drawdowns and outflows, which elevated redemption/burn volumes and led the market to underappreciate USDC’s underlying ecosystem expansion.

Since H2 last year, Circle has been active on external ecosystem build-out. The CPN payments system launched in Apr. already has 55 FIs onboard, with 74 under evaluation; Arc L1 launched in Dec. now has 100+ participants in testing; also in Dec., Circle secured a trust bank license, helping attract more traditional institutions.

2) The market had worried that as Circle expands its ecosystem, it must share reserve interest with partners, while Coinbase disclosed a rising USDC mix, potentially lifting Circle’s channel distribution costs and pressuring GPM. Those concerns were front and center.

In reality, Circle continued to lift its self-held USDC share, mitigating cost pressure. Coupled with software, payments and other infra services that carry high margins, 'other' grew faster this quarter with higher revenue contribution. GPM reached 40%, improving 50bps QoQ.

3) Guidance met overall, with line items slightly ahead. Details below.

(1) On multi-year USDC supply growth, despite volatility late last year and early this year, management still expects ~40% CAGR for multiple years, slightly above the market’s next-3-year view. Dolphin Research suggests this medium/long-term, largely qualitative guide should be taken lightly given market swings, and it does not imply near-term delivery.

(2) 'Other income' came in slightly above, with the company guiding $150–170 mn this year (+46% YoY), and consensus sitting near the low end. Dolphin Research views this as the area with more discretionary push from the company; both guidance and consensus are not demanding, and we look for continued quarterly beats. $Circle(CRCL.US)

### Related Stocks

- [CRCL.US - Circle](https://longbridge.com/en/quote/CRCL.US.md)
- [COIN.US - Coinbase](https://longbridge.com/en/quote/COIN.US.md)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.