Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

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Circle

# Circle Earnings Methodology

## 1. Overview

Earnings is defined as the net value retained by Circle after all expenses are subtracted from revenue. This metric is utilized to assess the on-chain profitability of Circle's suite of products, which includes USD Coin, Euro Coin, CCTP V1, CCTP V2, StableFX, and Arc. On-chain profitability is primarily driven by interest income generated from stablecoin reserve assets, transaction fees collected on the Arc chain, and fees accumulated from cross-chain transfers and foreign exchange trades. Because operating expenses are not fully reported on-chain, true off-chain costs may be understated by this metric.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric
- **Expenses**: Derived from the Expenses metric

## 3. Step-by-step calculation

### Component A: Revenue aggregation

- **Purpose**: To aggregate the total revenue generated across all Circle products.
- **Logic**: Daily revenue is retrieved from the upstream Revenue metric. This revenue is comprised of interest income generated from USD Coin and Euro Coin reserves, transaction fees from the Arc chain (with supply-side fees paid to block proposers subtracted), fees collected from CCTP V2 mint and withdraw events, and fees from StableFX trades.

### Component B: Expenses tracking

- **Purpose**: To track the total on-chain expenses incurred.
- **Logic**: Daily expenses are retrieved from the upstream Expenses metric, which tracks token incentives and other on-chain operating costs. For Circle, token incentives are set to zero, resulting in total on-chain expenses being represented as zero.

### Component C: Earnings calculation

- **Purpose**: To determine the net earnings of the project.
- **Logic**: Net earnings are calculated by subtracting daily expenses from daily revenue. The final values are normalized and aggregated on a daily basis.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Circle

Earnings

Earnings

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