Predictable and scalable cashflows

Circle is finally aligning its revenue model with what the market values most: predictability and scalability.

How?

1. Fireblocks Partnership & Arc Layer-1

Circle recently announced a partnership with Fireblocks to advance Arc, its Layer-1 blockchain. Arc is built with a clear focus: to serve institutional capital flows by enabling T0 settlement, a significant improvement over the traditional T+1 or T+2. Circle can now generate revenue directly through transaction and execution fees.

2. USYC

Recently, the USDH/Hyperliquid situation highlighted the risks of issuers hoarding all reserve income. The company side steps this issue through USYC.

Circle’s USYC operated by Hashnote (a Circle-owned entity), has been gaining serious traction. In less than a month, circulation grew from $183 million on August 13 to $605 million as of September 11 more than a 230% increase

USYC is also finding its way into DeFi as collateral. Most notably, it was included in Aave’s newly launched Horizon platform, where institutions can borrow stablecoins against tokenized Treasuries and other RWAs.

For Circle, this is a key milestone. USYC holders can now collateralize their USYC, borrow USDC, and re-deploy liquidity all while keeping the yield that Circle might have otherwise captured. In other words, USYC solves a long-standing criticism: that Circle kept all the reserve income from USDC while holders got none.

Why all of this matters is that Circle has faced criticism for leaning too heavily on reserve income from USDC and its revenue-sharing deals. With Arc and USYC, the company is now building scalable, predictable, and sustainable revenue streams that reduce its dependence on both the Fed’s interest rate policy and its major partners (Coinbase and Binance). Arc monetizes on-chain activity, while USYC generates income through execution fees and a share of yield. Together, these initiatives give Circle new leverage to renegotiate more favorable terms with its partners.

It’s why I believe we are currently seeing the revaluation of the firm and that’s why I’ve been a buyer of every dip under $150