Interest Income from Reserves:
The backbone of Circle’s revenue model is its flagship stablecoin, USDC, which is fully backed by reserves. These reserves aren’t just sitting idle—they’re typically invested in interest-bearing, low-risk instruments like short-term U.S. Treasuries and reverse repo agreements. As more USDC is issued to meet demand, the reserve base grows. With high circulating volumes, even a modest interest rate can translate into billions in gross interest income.
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