Circle reported a net profit of $226 million this quarter, 4.7 times that of the previous quarter. Reviewing the financials, operating profit was $208 million—nearly 90%, or $182 million, came from a single source: selling its newly issued token, ARC. Remove that revenue, and the financial picture looks far worse. Interest income from USDC reserves amounted to $658 million, down 8% year-over-year, as the reserve yield dropped by 0.61 percentage points. At quarter-end, USDC circulation stood at $73.9 billion, nearly unchanged from a year ago. Circle’s stablecoin market share is 27%, having lost 1.8 percentage points over the past year. In the same quarter, the company laid off approximately 5% of its workforce. It still holds 2.5 billion ARC tokens—one-quarter of the total supply. As the Federal Reserve cuts interest rates, USDC’s traditional revenue stream is growing thinner. Circle’s new source of income? The oldest one in crypto: issuing tokens.