Any update on the Arc token considerations and timing for a decision?

Jeremy Allaire confirmed that the exploration of the Arc token continues, focusing on its role in providing stakeholder incentives, governance, security, and utility. No specific timeline for a decision was provided, but progress towards Arc Mainnet is strong. “We aren't communicating about any specific time line or other because we're still in that exploration.”

What tangible signs of progress have been seen from the GENIUS Act, and what are Circle's views on the CLARITY Act?

Jeremy Allaire stated that GENIUS has been a tailwind, creating a legal foundation for major institutions and leading to follow-on guidance from SEC/CFTC. It's also influencing international regulators. Regarding CLARITY, he believes it's very close to the finish line, with the industry and White House working on compromise language, and he is cautiously optimistic about its significant unlock for the market. “CLARITY is very close to the finish line right now. I know we're very close to the issues. There's a lot that's been reported. I think the most recent reporting seems accurate, which is that the crypto industry and the banking industry are working day over day, week over week at a staff level and with the White House to come up with some compromise language.”

Could Arc and CCTP evolve to become asset-agnostic platforms for tokenization of equities and other assets? What is the long-term vision?

Jeremy Allaire explained Arc as an economic operating system for prudentially sound financial activity, operated by leading financial infrastructure companies. It aims to provide the most capital-efficient liquidity for digital dollars and serve as a liquidity and distribution hub for other asset issuers (tokenized equity, funds, bank deposits) through its interoperability infrastructure, building on CCTP's success. “This is a general-purpose OS for economic activity on the Internet. As we come into the market in this environment where we have demands from people who want to build very, very cost-efficient, capital-efficient AI transactions, we have demand from people who want to build tokenization applications and get liquidity and distribution for those. We think Arc and our interoperability infrastructure will be very, very well suited for that environment.”

CRCL

Circle Internet Group (CRCL) Q4 FY25 earnings call: guidance and Q&A

Q: How will the Agentic evolution play out, starting with trading liquidity then payments/borrowing? How will USDC stay central, and can Arc technically support this compared to other Layer 1s?

Jeremy Allaire stated that Arc was designed with Agentic economic activity in mind, and the convergence of programmable money and machine-intermediated money is happening now. AI agents need reliable, low-cost, trusted mediums of exchange, and USDC is being used for virtually all AI payments infrastructure. Arc is purpose-built for this, with a validation model supporting scale and transaction costs down to $0.00001. Circle Gateway, a new feature for autonomous agents, is already in Testnet. “Arc is built with an economic model where we can drive the cost of transactions in high-performance kind of channels down to [ $0.00001 ].”

Earnings call· Dec 2025 (Q4 FY25)· Financials· Feb 25, 2026

Source: earnings call transcript

Executive summary

Circle Internet Group Q4 FY25 — Strong Growth in Stablecoin Network and AI Integration

Circle Internet Group reported a strong Q4 FY25, driven by significant growth in its stablecoin network and increasing adoption of its platform. The company is positioning itself at the convergence of blockchain technology and artificial intelligence, anticipating a future where AI agents drive exponential economic activity. Circle aims to be the core infrastructure for this new internet financial system, emphasizing trust, compliance, and interoperability.

Highlights

USDC in circulation reached $75 billion at year-end, up 72% year-on-year.
On-chain USDC volume hit nearly $12 trillion, representing 247% year-on-year growth.
Total revenue and reserve income was $770 million in the quarter, up 77% year-on-year.
Adjusted EBITDA for the quarter was $167 million, up 412% year-on-year, with an adjusted EBITDA margin of 54%.
CCTP volume grew 3.7x year-over-year to over $41 billion in the fourth quarter, reaching 62% of all bridge volume in January.

Concerns

The reserve return rate was 3.81% for the fourth quarter, down 68 basis points year-on-year, reflecting the decline in SOFR.
Distribution costs in Q4 2024 included a previously disclosed one-time payment of $60 million to a large distribution partner.

Guidance & targets

Category	Target	Timeline	Confidence
Other Revenue	$150M-$170M medium materiality	FY26	High
Revenue Less Distribution Cost (RLDC) Margin	38%-40% medium materiality	FY26	High
Adjusted Operating Expenses	$570M-$585M medium materiality	FY26	High
USDC Circulation Growth	40% CAGR high materiality	multiyear through cycle	Medium

CRCL operating KPIs by quarter

CRCL operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
USDC in circulation	$75.3B USDC in circulation was $75.3 billion at year-end, up 72% year-on-year and notably grew faster than the overall CFX stablecoin market. Source: earnings call transcript	$77B First, we ended the quarter with $77 billion of USDC in circulation, representing 28% year-over-year growth. Source: earnings call transcript	—	+2.3%
Supported blockchain networks	30+ And we now support USDC on over 30 different blockchain networks with interoperability being a key piece of Circle's platform strategy. Source: earnings call transcript	34 USDC now operates on 34 different blockchain network platforms. Source: earnings call transcript	35 The software infrastructure that powers this open network runs on every major blockchain technology, spanning 35 blockchain networks and reaching users in 185 countries. Source: earnings call transcript	+2.9%
CCTP volume	$41B+ As noted in my introductory comments, Circle's network grew strongly with 3.5x year-on-year growth in onchain transaction volume and notably, CCTP, a critical infrastructure for interoperable usage of USDC, grew 3.7x year-over-year to over $41 billion of volume in the fourth quarter. Source: earnings call transcript	<$50B As you can see [Audio Gap] we've continued to scale the cross-team transfer protocol, reaching almost $50 billion of volume in Q1, representing 3x strategic customer capability with Arc. Source: earnings call transcript	—	—
Minting and redemption volume	$163B And that trust shows up in our fundamental liquidity with $75 billion of USDC in circulation and unmatched liquidity infrastructure that in Q4 supported $163 billion of minting and redemption volume. Source: earnings call transcript	<$150B We also remain the most liquid and available digital dollar in the world, having minted and redeemed nearly $150 billion of USDC in Q1 alone, providing reliable and compliant digital dollar dial tone through our global liquidity network all around the world. Source: earnings call transcript	$170B At the same time, we are seeing record amounts of minting and redemption of USDC with Mint on Redeem volume reaching $170 billion in Q2. Source: earnings call transcript	—
EURC in circulation	€310M In the fourth quarter, EURC reached EUR 310 million, representing 3.8x year-on-year growth and has already grown 25% since quarter end to EUR 389 million as of February 20. Source: earnings call transcript	€358M Alongside USDC's growth, we are seeing strong growth from our other digital assets, EURC, which has long been the world's largest euro stable point, grew 2x year-over-year, ending the period at EUR 358 million. Source: earnings call transcript	—	+15.5%
Enrolled financial institutions Circle Payments Network	55 We have 55 financial institutions enrolled, that's up from 29 in the third quarter. Source: earnings call transcript	136+ We've now enrolled over 136 financial institutions into using CPN products, up 36% quarter-over-quarter. Source: earnings call transcript	175 We continue to enroll new financial institutions into the network with nearly 30% quarter-over-quarter growth, reaching 175 financial institutions, and the momentum has continued. Source: earnings call transcript	—
On-platform USDC	$12.5B USDC held within Circle's platform infrastructure or on-platform USDC, grew 5.6x year-on-year to $12.5 billion at year-end, representing 17% of total circulation. Source: earnings call transcript	$13.7B USDC held within Circle's platform infrastructure grew 3.5x year-over-year to $13.7 billion in the first quarter, representing 18% of total circulation. Source: earnings call transcript	$12.4B USDC held within Circle's platform infrastructure increased 106% year-over-year to $12.4 billion, representing 17% of circulation. Source: earnings call transcript	-9.5%
Reserve return rate	3.81% The reserve return rate was 3.81% for the fourth quarter, down 68 basis points year-on-year, reflecting the decline in SOFR during this period. Source: earnings call transcript	3.5% The reserve return rate was 3.5% for the quarter, down 66 basis points year-on-year, reflecting the decline in [ SOFR ] during this period. Source: earnings call transcript	3.48% The reserve return rate was 3.48% for the quarter down 66 basis points year-on-year, reflecting the decline in Sofa during the period. Source: earnings call transcript	0 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

USDC in circulation $75.3B year-end FY25

up 72% YoY

EURC in circulation EUR 310M Q4 FY25

3.8x YoY growth

Grew to EUR 389M as of February 20

USYC assets $1.5B year-end FY25

Grew to over $1.7B since quarter end

Product announcements

Product	Type	Timeline
Arc Testnet	launch	Q4 FY25
StableFX	launch	Q4 FY25
Circle Gateway	launch	Q4 FY25

Deals & partnerships

Intuit Integration for low-cost programmable money

Intuit is partnering with Circle to bring low-cost programmable money through Circle's technology to its millions of consumers and businesses.

Visa Expansion of USDC integration for settlement

Visa continues to expand its integration of Circle stablecoins, announcing the launch of USDC settlement that permits U.S. Visa card issuers and acquirers to settle outside of normal banking hours using USDC.

Polymarket Formal partnership for USDC as core collateral and settlement asset

Circle and Polymarket, the largest prediction market in the world, announced a formal partnership where Polymarket will continue to advance its use of USDC as the core collateral and settlement asset for their markets.

Cash App Launched products and offerings taking advantage of USDC

Cash App launched products and offerings that took advantage of USDC.

Gusto Launched products and offerings taking advantage of USDC

Gusto launched products and offerings that took advantage of USDC.

Deel Launched products and offerings taking advantage of USDC

Deel launched products and offerings that took advantage of USDC.

Interactive Brokers Launched products and offerings taking advantage of USDC

Interactive Brokers launched products and offerings that took advantage of USDC.

JPMorgan Launched products and offerings taking advantage of USDC

JPMorgan launched products and offerings that took advantage of USDC.

Mastercard Launched products and offerings taking advantage of USDC

Mastercard launched products and offerings that took advantage of USDC.

Risks & headwinds

USDC circulation variability

quarter-on-quarter variability

Mitigation:Building business for long-term success, focusing on multiyear CAGR.

Competition in stablecoin market

efforts of many other firms to enter and compete

Mitigation:Maintaining durable network effects, trust, compliance, liquidity, and market-neutral infrastructure.

Regulatory uncertainty for CLARITY Act near-term

DC is DC and all the dynamics of the spring

Mitigation:Working with industry and White House on compromise language; cautiously optimistic.

What to watch in Q1 FY26

Arc Mainnet Launch

2026

Current Testnet launched in Q4 FY25

Target Mainnet launch in 2026

Why it matters

Arc is purpose-built for agentic economic activity and tokenization, crucial for Circle's long-term strategy.

We launched the Testnet of Arc, our Layer 1 blockchain network, and we're on track to launch Mainnet this year.

Find out whether CRCL delivers this. Inve re-checks your case every morning.

Q&A highlights

How will the Agentic evolution play out, starting with trading liquidity then payments/borrowing? How will USDC stay central, and can Arc technically support this compared to other Layer 1s?

Jeremy Allaire stated that Arc was designed with Agentic economic activity in mind, and the convergence of programmable money and machine-intermediated money is happening now. AI agents need reliable, low-cost, trusted mediums of exchange, and USDC is being used for virtually all AI payments infrastructure. Arc is purpose-built for this, with a validation model supporting scale and transaction costs down to $0.00001. Circle Gateway, a new feature for autonomous agents, is already in Testnet.

“Arc is built with an economic model where we can drive the cost of transactions in high-performance kind of channels down to [ $0.00001 ].”

asked by Devin Ryan · answered by Jeremy Allaire

2 min read 5 chapters

Detailed narrative

AI and Agentic Economic Activity

Circle is observing an explosion of developer activity around AI, which is becoming a significant driver for its platform and USDC adoption. The company believes that tens or hundreds of billions of AI agents will interact and perform economic functions over the Internet, leading to an unprecedented acceleration of economic activity.

Circle is building core infrastructure, including Arc and Circle Gateway, to support these agent-to-agent transactions with reliable, low-cost, and trusted mediums of exchange like USDC.

Arc Network and Interoperability Infrastructure

The Testnet of Arc, Circle's Layer 1 blockchain network, launched in Q4 FY25 with over 100 companies actively testing. It has achieved near 100% uptime, 0.5-second transaction settlement finality, and averages 2.3 million daily transactions in testing. Arc is purpose-built for agentic economic activity and tokenization, designed as an economic operating system for prudentially sound financial activity.

Circle's CCTP (Cross-Chain Transfer Protocol) has shown strong growth, with volume reaching over $41 billion in Q4 and capturing 62% of all bridge volume in January, positioning it as critical infrastructure for value movement across blockchains.

CPN and StableFX Expansion

Circle Payments Network (CPN) continues to scale rapidly, with 55 financial institutions enrolled (up from 29 in Q3) and 74 more in eligibility reviews. CPN's annualized volume reached $5.7 billion as of February 20, growing approximately 68% since the Q3 update, driven by B2B cross-border merchant settlement and remittance applications.

Circle also launched StableFX in production beta, an onchain FX app combining institutional-grade FX execution with atomic settlement for 24/7 capital-efficient currency conversion, which will support Arc transactions and CPN.

Regulatory Tailwinds and Competitive Moat

The GENIUS Act has created a legal foundation for major institutions to enter the stablecoin market, with follow-on guidance from the SEC and CFTC clarifying usage in capital markets. Circle is cautiously optimistic about the CLARITY Act, viewing it as another significant unlock for market development.

The company emphasizes its competitive moat built on trust, compliance, unmatched liquidity infrastructure, and a market-neutral approach, which attracts major financial institutions and enterprises to integrate USDC.

Growth in Other Digital Assets

EURC, Circle's euro-denominated stablecoin, reached EUR 310 million in Q4 FY25, representing 3.8x year-on-year growth, and further grew to EUR 389 million by February 20. USYC, Circle's tokenized Money Market Fund, ended the year at approximately $1.5 billion in assets and continued to grow to over $1.7 billion since quarter-end, driven by demand for USYC as collateral on leading exchanges.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.