# USDC Related Articles

HTX News Center provides the latest articles and in-depth analysis on "USDC", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Circle: From Issuance to Infrastructure

Title: Circle: From Issuance to Infrastructure Circle, the issuer of the USDC stablecoin, is undergoing a strategic transformation to reduce its dependence on interest income from reserve holdings, which is declining due to falling interest rates. Historically, Circle's revenue came primarily from the yield on US Treasury reserves backing USDC. However, it also paid significant fees (approximately 60 cents of every dollar earned) to partners like Coinbase for distributing and settling USDC. To capture more value across the financial stack, Circle is vertically integrating into three new layers: 1. **Settlement Layer:** It is launching **Arc**, a native Layer-1 blockchain. Arc, which uses USDC as its gas token, aims to capture transaction fees currently paid to other blockchains (like Ethereum and Solana) and offers features like privacy for institutional payments. 2. **Distribution Layer:** The **Circle Payments Network (CPN)** connects financial institutions directly to Circle, reducing reliance on exchanges like Coinbase. While not yet monetized, CPN growth has improved Circle's margins. 3. **Application Layer:** Circle is building an **AI Agent Economy** infrastructure with products like Agent Wallets and Nanopayments. The goal is to capture fees from high-volume, automated transactions executed by AI agents, a market where USDC already dominates. These moves represent Circle's shift from a single-product company (USDC issuance) to a full-stack financial platform. The strategy faces challenges, including market competition from players like Stripe and Tether, and potential internal tension regarding how value created by the new Arc blockchain and token (ARC) will accrue to Circle's public shareholders (CRCL). Circle's long-term success depends on its ability to successfully execute this vertical integration and diversify its revenue streams away from interest income.

marsbit13h ago

Circle: From Issuance to Infrastructure

Title: Circle: From Issuance to Infrastructure Circle, the issuer of the USDC stablecoin, is undergoing a strategic transformation from a single-product company dependent on reserve interest income to a vertically integrated, full-stack financial platform. Its primary revenue source, earnings from US Treasury reserves backing USDC, is under pressure from declining Federal Reserve interest rates. Furthermore, Circle pays out a significant portion (~60 cents per dollar earned) to partners like Coinbase for distribution and settlement, leading to value leakage. To address these challenges and capture more value across the payment stack, Circle announced three key initiatives in Q1 2026: 1. **Settlement Layer**: Launching its own Layer-1 blockchain, **Arc**. Designed for institutional use with configurable privacy and quantum-resistant architecture, Arc uses USDC as its native gas token, allowing Circle to capture transaction fees currently paid to other blockchains like Ethereum. 2. **Distribution Layer**: Expanding the **Circle Payments Network (CPN)**, which connects financial institutions directly to Circle, reducing reliance on third-party exchanges for USDC distribution and on/off-ramps. 3. **Application Layer**: Building infrastructure for an **AI agent economy**, including tools for agent wallets, nanopayments, and a marketplace. Circle aims to monetize the high volume of AI-driven microtransactions predominantly settled in USDC. This vertical integration strategy aims to diversify Circle's revenue away from volatile interest income. However, a key challenge remains: aligning the value capture of the new ARC token with the interests of existing public market shareholders (CRCL) who invested primarily for reserve yields. The success of this stack-wide expansion hinges on Arc's adoption and Circle's ability to balance value distribution between its core corporate entity and its new blockchain ecosystem.

链捕手13h ago

Behind USDH's Acquisition by Coinbase: Hyperliquid's Interest-Driven Choice

Coinbase announces its integration with Hyperliquid, becoming the official USDC treasury deployer on the platform. The native stablecoin USDH, issued by Native Markets, will be gradually phased out as Coinbase acquires its brand assets. Users can convert USDH to USDC or fiat without fees during the transition. The move solidifies USDC as Hyperliquid's official stablecoin and pricing asset. The arrangement is framed as a three-way win: Coinbase deepens its ties to the Hyperliquid ecosystem; Hyperliquid gains the vast majority of future USDC reserve yield revenue (estimated at up to 90%); and Native Markets exits with compensation from the asset sale. However, some community members criticize the outcome, viewing USDH's shutdown as a retreat from decentralization and arguing that the original governance vote favored internal interests over users. The partnership also sees Circle and Coinbase staking HYPE tokens to support the network's AQAv2 upgrade. Ultimately, the article suggests the resolution underscores pragmatic economic interests over earlier community-centric rhetoric.

marsbit05/15 06:52

Behind USDH's Acquisition by Coinbase: Hyperliquid's Interest-Driven Choice

marsbit05/15 06:52

Behind the Coinbase Acquisition of USDH: Hyperliquid’s Interest-Driven Choice

The article discusses the transition of the Hyperliquid ecosystem's native stablecoin, USDH, following its acquisition by Coinbase. Last September, USDH, issued by Native Markets, was a focal point in the ecosystem. Recently, Coinbase announced it will become the official USDC treasury deployer on Hyperliquid. Native Markets granted Coinbase the rights to purchase the USDH brand assets, leading to the gradual phase-out of USDH. Users can convert USDH to USDC or fiat without fees during this period. USDC is now Hyperliquid's official stablecoin. The move is framed as a three-way win: * **Coinbase & Circle:** Deepen ties with Hyperliquid's on-chain economy. Both companies are staking HYPE tokens. Circle had already invested in HYPE previously. * **Hyperliquid:** Becomes the primary beneficiary, set to receive the vast majority (estimated ~90%) of the reserve yield income from the ~$5.16 billion in USDC on its platform. This could translate to significant daily HYPE buybacks. The alliance with Coinbase may also offer regulatory advantages in the US. * **Native Markets:** While exiting the stablecoin business, the team reportedly received economic compensation from Coinbase for the USDH brand assets, framing it as a successful conclusion to USDH's role. However, the article notes criticism from some Hyperliquid community members. They view the shift as a step back for decentralization and argue that the original USDH issuer vote was driven by internal interests rather than user benefit, leaving regular users with nothing. The conclusion reflects that the eventual partnership between Hyperliquid and the giants (Coinbase/Circle) underscores a reality of利益分配 (interest distribution) over initial ideals of community and ecosystem advocacy.

Odaily星球日报05/15 06:48

Behind the Coinbase Acquisition of USDH: Hyperliquid’s Interest-Driven Choice

Odaily星球日报05/15 06:48

Hyperliquid (HYPE) Surges 14% As Coinbase And Circle Expand USDC Integration

Coinbase is expanding its integration of Circle's USDC stablecoin on the Hyperliquid protocol. It will become the official treasury deployer for USDC, treating it as the primary Aligned Quote Asset, while the network's USDH token will be phased out. Circle will handle technical infrastructure. As part of the transition, both companies will stake HYPE tokens, and Coinbase gains rights to acquire USDH brand assets. Coinbase emphasized a smooth migration, with users able to redeem USDH for USDC or fiat without fees for months. The Hyper Foundation will distribute grants to affected deployers and builders. Separately, Circle confirmed USDC will become the main collateral on Hyperliquid and plans to stake 500,000 HYPE tokens. Following this news and a positive regulatory development for the CLARITY Act, the price of Hyperliquid's native HYPE token surged 14% to around $44.50.

bitcoinist05/15 02:01

Hyperliquid (HYPE) Surges 14% As Coinbase And Circle Expand USDC Integration

bitcoinist05/15 02:01

Circle's Second Growth Curve: After the $222 Million ARC Financing, CRCL or ARC?

Circle, the issuer of USDC, announced that its new public blockchain Arc completed a $222 million private sale for its native token ARC, with the network's fully diluted valuation reaching $3 billion. The funding round was led by a16z crypto, with participation from major institutions including BlackRock, Apollo, and ICE. The article explains Circle's rationale for building its own L1 blockchain, Arc. Existing chains like Ethereum and Solana are seen as lacking native support for large-scale institutional needs, such as regulatory compliance, predictable transaction costs, and asset issuance/redemption workflows. Arc is designed to fill this gap as a foundational layer for the on-chain economy, moving beyond Circle's reliance on USDC reserve interest for revenue. It details the dual-token model of Arc: USDC serves as the stable gas token for predictable transactions, while ARC is the network's native asset used for staking in the planned transition to Proof-of-Stake, governance, and aligning long-term incentives among participants. ARC's total supply is 10 billion, with 60% allocated to ecosystem development, 25% to Circle, and 15% to a long-term reserve. All protocol fees are converted to ARC, with portions burned and distributed to stakers. The piece contrasts the value proposition of Circle's public stock (CRCL) and the ARC token. CRCL captures the company's core cash flows from USDC interest and other business lines. ARC captures the growth potential of the Arc network itself. While legally separate, network success benefits both: it drives USDC usage for Circle and increases the value of its 25% ARC holding. Finally, it outlines participation avenues for retail users, primarily through the Arc House community and testnet activities, while noting the competitive landscape with projects like Canton Network and Plasma. The article concludes that Arc's success hinges on attracting real institutional activity post-mainnet launch, scheduled for Summer 2026.

链捕手05/14 13:53

Circle's Second Growth Curve: After the $222 Million ARC Financing, CRCL or ARC?

链捕手05/14 13:53

Wall Street Capital Enters ARC, Circle Sparks a System-Level Competition for Stablecoins

Wall Street Capital Enters the ARC Arena as Circle Launches a System-Level Battle for Stablecoin Dominance On May 11, Circle successfully raised $222 million in a pre-sale funding round for its new blockchain and native token, ARC, giving the network a fully diluted valuation of $3 billion. The investor lineup, featuring Wall Street giants like BlackRock and Intercontinental Exchange alongside top-tier venture capital firms such as a16z and ARK Invest, signaled a collective strategic bet on future financial infrastructure. This move marks Circle's significant evolution from a stablecoin issuer (notably USDC) to a designer of financial systems. While USDC operates on external blockchains like Ethereum, making Circle dependent on their performance, ARC aims to create a dedicated infrastructure for the circulation, payment, and clearing of stablecoins. This would integrate currency issuance and circulation into one system, potentially shifting Circle's business model from asset management to infrastructure provision. The convergence of traditional finance and crypto-native capital in this funding round underscores a broader industry shift: stablecoins are transitioning from being mere trading tools to becoming core components of financial infrastructure. By controlling both the issuance (via USDC) and the流通 pathway (via ARC), Circle could establish a closed-loop system from issuance to settlement. If successful, this infrastructure could optimize costs, lower barriers for institutional adoption, and promote standardization in on-chain finance. Ultimately, it has the potential to challenge traditional systems like SWIFT in areas such as cross-border payments, representing a possible step toward the重构 of global financial infrastructure.

marsbit05/13 14:54

Wall Street Capital Enters ARC, Circle Sparks a System-Level Competition for Stablecoins

marsbit05/13 14:54

Circle's Three-Dimensional Valuation Framework: Where Is the Bottom, Where Is the Top

"Circle's 3D Valuation Framework: Where is the Bottom, Where is the Top?" - Article Summary The article analyzes Circle's valuation following its Q1 2026 earnings. While its core business generates substantial interest income from USDC reserves ($6.53B in Q1, up 17% YoY), this revenue is highly sensitive to interest rates and shared significantly with Coinbase. The author proposes a three-dimensional valuation framework: 1. **Interest Business (The Floor):** Valued like a bank (8-15x P/E) on net interest income after Coinbase's share. This provides a conservative valuation baseline. 2. **Payment & Platform Business (The Inflection Point):** Includes CPN (Circle Payments Network) and "Other Revenue" (transaction, integration services). This high-growth segment, not shared with Coinbase, is valued on a platform/network model (higher P/S multiples), similar to Visa/Mastercard. It represents Circle's shift beyond pure interest income. 3. **Arc Network & ARC Token (The Future / Optionality):** Arc is an institutional-focused, EVM-compatible L1 blockchain where USDC is the native gas token. A $222M ARC token pre-sale at a $3B FDV attracted major traditional finance players (BlackRock, Apollo, ICE). While Circle holds 25% of ARC tokens, their value is separate from CRCL equity. This dimension represents the long-term, high-upside bet on Circle becoming an "economic operating system." Current market cap (~$30B) prices in significant future growth beyond the sum-of-the-parts valuation derived from current earnings. The investment thesis hinges on believing in Circle's transition from a "stablecoin issuer" to a broader financial infrastructure and network platform. Key variables for the future include USDC adoption growth, CPN network effects, Arc's success, and potential renegotiation of the Coinbase revenue-sharing agreement.

marsbit05/13 13:56

Circle's Three-Dimensional Valuation Framework: Where Is the Bottom, Where Is the Top

marsbit05/13 13:56

Circle Releases Arc Network Whitepaper: Can the New Economic Mechanism Drive It to Become the "Clearing Coordination Layer" for Institutional-Grade Stablecoin Payments?

Circle has released the whitepaper for its Arc Network, detailing plans for a new economic coordination layer using the proposed ARC token. Arc is a Layer 1 blockchain designed for enterprise-level stablecoin payments, featuring USDC as its native gas token, a high-performance consensus mechanism for instant transaction finality, and optional enterprise privacy features. Currently operating on a Proof-of-Authority (PoA) model, the network plans a future transition to a Proof-of-Stake (PoS) system. The ARC token is intended to serve as the network's native coordination asset, facilitating governance, enabling staking rewards, and managing fee mechanisms. User fees paid in stablecoins would be converted to ARC, with portions distributed as rewards and burned. The governance model will blend token-based voting with institutional oversight, especially for high-sensitivity matters like security and compliance. While positioning Arc as a potential settlement layer for institutional stablecoin payments, the whitepaper acknowledges challenges. These include the network's current centralization, the unfinished and potentially volatile ARC token economics, and the evolving global regulatory landscape for stablecoins. The development signals a broader industry trend where Web3 infrastructure competition is shifting from pure performance to factors like liquidity, compliance, and institutional-grade stability.

marsbit05/13 02:04

Circle Releases Arc Network Whitepaper: Can the New Economic Mechanism Drive It to Become the "Clearing Coordination Layer" for Institutional-Grade Stablecoin Payments?

marsbit05/13 02:04

As Circle, the First Stablecoin Stock, Resolves to Shed Its Label

Circle, the "stablecoin stock," reported its Q1 2026 results, showing a 20% YoY revenue increase to $694M despite a 15% drop in net profit due to post-IPO stock-based compensation and operational investments. The company's USDC stablecoin hit a record $770B in circulation with on-chain transaction volume soaring 263% YoY. However, market share slightly declined amid competition. The key market catalyst was the announcement of a $222M pre-sale for the ARC token of Circle's new institutional-focused Layer 1 blockchain, Arc, valuing the network at $30B. Led by a16z, the round included major investors like BlackRock and Apollo. CEO Jeremy Allaire positioned this as a strategic pivot from a stablecoin issuer to a broader internet platform and "financial OS" company. Circle also launched "Agent Stack" products for AI agent payments using USDC. While reaffirming its full-year 2026 guidance, the company noted the financial impact of Arc is not yet included, leaving room for future upside. Following the report, CRCL's stock surged nearly 16%. Wall Street analysts remain largely bullish on the long-term narrative, though some caution about near-term execution risks and the current immaterial contribution of new initiatives like Arc. The focus is now on Arc's mainnet launch, ARC token adoption, and evolving U.S. crypto regulation.

链捕手05/12 07:49

As Circle, the First Stablecoin Stock, Resolves to Shed Its Label

链捕手05/12 07:49

# USDC Related Articles

Circle: From Issuance to Infrastructure

Circle: From Issuance to Infrastructure

Behind USDH's Acquisition by Coinbase: Hyperliquid's Interest-Driven Choice

Behind the Coinbase Acquisition of USDH: Hyperliquid’s Interest-Driven Choice

Hyperliquid (HYPE) Surges 14% As Coinbase And Circle Expand USDC Integration

Circle's Second Growth Curve: After the $222 Million ARC Financing, CRCL or ARC?

Wall Street Capital Enters ARC, Circle Sparks a System-Level Competition for Stablecoins

Circle's Three-Dimensional Valuation Framework: Where Is the Bottom, Where Is the Top

Circle Releases Arc Network Whitepaper: Can the New Economic Mechanism Drive It to Become the "Clearing Coordination Layer" for Institutional-Grade Stablecoin Payments?

As Circle, the First Stablecoin Stock, Resolves to Shed Its Label

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