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 Revenue Methodology

## 1. Overview

Revenue measures the portion of fees retained by Circle after distributing any required share to supply-side participants. The yield generated from reserve assets backing USD Coin and Euro Coin, transaction fees from cross-chain transfers via CCTP V1 and CCTP V2, and trading fees from StableFX are captured by this metric. For the Arc product, transaction gas fees are fully distributed to validators as supply-side fees, resulting in zero net protocol revenue for that product.

## 2. Data sources

- **Blockchain events**: `MintAndWithdraw` events from `TokenMessenger` and `TokenMessengerMinterV2` contracts; `TradeStatusChanged`, `TakerRefunded`, and `MakerRefunded` events, and `recordTrade` and `authorizeTrade` function calls from `FxEscrow` contracts; transaction execution data; `Mint` and `Burn` events from `FiatTokenV2`, `USD Coin`, `Euro Coin`, `EUROC`, and `treasury` contracts; and `Issued`, `Burned`, and `Transferred` events from the `assets` pallet, covering Ethereum, Solana, Arbitrum, Base, and 16 other chains
- **External data**: End-of-day price feeds for assets, daily effective federal funds rates from the Federal Reserve Bank of New York, historical US Treasury bill rates, and reserve asset holdings and annual fee disclosures published by the issuer

## 3. Step-by-step calculation

### Component A: USD Coin and Euro Coin reserve yield calculation

- **Purpose**: The yield generated from the reserve assets backing USD Coin and Euro Coin is estimated and calculated.
- **Logic**: For historical dates prior to December 11, 2024, the interest-bearing supply is estimated as 80% of the circulating supply of USD Coin, which is then multiplied by the daily US Treasury bill rate to calculate daily fees. For dates after December 10, 2024, programmatic fees are calculated by multiplying the amortized cost or market value of reserve fund holdings by the daily effective federal funds rate from the Federal Reserve Bank of New York. Additionally, annual reserve fee amounts from published reserve disclosures are incorporated for specific historical periods. Circulating supply is determined by aggregating mint and burn events across all supported chains, including Solana account balances, Polkadot Asset Hub events, and circulating market capitalization data for Circle USYC.
- **Key fields**: `outstanding_supply`, `tbill`, `rate_percentage`, `amount`

### Component B: CCTP V1 and CCTP V2 cross-chain transfer fees

- **Purpose**: Fees collected from cross-chain asset transfers are captured.
- **Logic**: Fee amounts are extracted from `MintAndWithdraw` events emitted by `TokenMessenger` and `TokenMessengerMinterV2` contracts. These fee amounts are aggregated daily by chain and product.
- **Key fields**: `fee_collected`, `token_address`

### Component C: StableFX trading fees

- **Purpose**: Trading fees from settled foreign exchange trades on Arc are captured.
- **Logic**: Trade details are parsed from `recordTrade` and `authorizeTrade` function calls on `FxEscrow` contracts. Settlement is verified using `TradeStatusChanged` events with a settled status, while trades associated with `TakerRefunded` or `MakerRefunded` events are excluded. Fees are extracted for both the taker and maker legs in their respective delivered assets and aggregated daily.
- **Key fields**: `taker_fee`, `maker_fee`, `taker_delivered_token_address`, `maker_delivered_token_address`

### Component D: Arc gas fees and supply-side distribution

- **Purpose**: Transaction gas fees on the Arc chain are calculated and the net revenue after supply-side distribution is determined.
- **Logic**: Gas fees are calculated for all transactions on the Arc chain by multiplying the gas used by the effective gas price. Because the gas asset is USD Coin, these fees are natively denominated in USD. To determine net revenue, supply-side fees are subtracted. On Arc, 100% of transaction gas fees are distributed to validators (the block proposers), meaning the supply-side fees equal the total gas fees, resulting in zero net revenue for the Arc product.
- **Key fields**: `gas_used`, `gas_price`, `fees_supply_side`

### Component E: USD conversion and final revenue aggregation

- **Purpose**: All fee components are normalized to USD and aggregated to calculate total revenue.
- **Logic**: Asset amounts are normalized by decimal precision. Non-USD fee components are converted to USD using end-of-day asset prices. Total revenue is calculated by summing the USD-denominated fees from reserve yields, CCTP V1, CCTP V2, and StableFX, and adding the net revenue from Arc (which is zero). Daily revenue is aggregated with UTC day boundaries.
- **Key fields**: `fees`, `revenue`, `price_usd`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Circle

Revenue

Revenue

Competitive landscape

Chain breakdown