How does stablecoin company Circle make money?

It is difficult for ordinary people to make money through stablecoins. In this issue, I will talk about the reasons.

After the last video was released, some friends sent me private messages in the background, asking me how to make money through stablecoins. In fact, making money with stablecoins is not suitable for ordinary people. It is a game for big institutions.

But this does not prevent us from understanding how this business that even the Trump family is flocking to is played.

It just so happens that the stablecoin company

You will understand as soon as I say it. Users buy USDC, a stable currency of US dollars, from Circle. The exchange rate between USDC and the US dollar is 1:1. For every USDC with a face value of 1 US dollar purchased by users, Circle will get 1 US dollar. This 1 US dollar is called

USDC's US dollar reserve.

Circle will invest this money in low-risk assets such as US Treasury bonds to earn interest.

Friends who are familiar with finance will definitely feel a little familiar. Isn't this the reserve fund for third-party payment? Yes, that's right. As we all know, before the introduction of the reserve fund management method, payment companies such as Alipay could deposit the reserve fund in the bank to earn interest, which is actually a very good business, because the more deposited funds, the more interest.

In 2024, Circle's total revenue will be approximately US$1.676 billion, and its net profit will be approximatelyUS$156 million

So,How much money Circle can make depends on how widely it can expand the network of the US dollar stablecoin USDC and how many people use USDC, which determines the size of its reserves. On the other hand, it also depends on the interest rate level in the United States. The high interest rate environment will amplify Circle's earnings. From 2022 to 2024, the Fed's interest rate hikes will lead to an increase in short-term Treasury yields, and Circle's reserve income will increase significantly. After talking about Circle, let's turn our attention to the entire market. As far as the US dollar stablecoin market is concerned, it is now in the era of duopoly. Ranked first now is USDT issued by Tether, with a total market value of approximately US$155 billion and a market share of more than 60%. USDC issued by Circleis the second largest US dollar stablecoin, with a total market value of approximately US$61.5 billion and a market share of 26%.

There are also some new entrants. For example, the Trump family's World Liberty Financial has just entered the U.S. dollar stablecoin market and issued USD1, with a total market value of approximately US$2.2 billion in 2025, ranking third, but there is a clear gap between it and USDT and USDC.

Therefore, this market is still in a state of limited oligopoly competition, because such a good business with huge profits and interest, although the model is simple, has a high entry threshold and is suitable for powerful and influential big capital. We ordinary people should look for other opportunities.