Recently, Circle released its first financial report after going public, which has attracted widespread attention in the industry. The report indicates that the company is facing a situation of both opportunities and challenges.

Thanks to the Federal Reserve's high interest rate policy, Circle has achieved significant interest income through its expanded issuance. This portion of income accounts for 96% of the company's total revenue, making it the primary source of profit for Circle. However, the expectation that the Federal Reserve may cut interest rates in the future also brings uncertainty to the company's long-term earnings.

To further expand its market share, Circle has adopted an aggressive market strategy. The company has provided more distribution subsidies to major exchanges such as Coinbase and Binance. One specific manifestation of this strategy is the recently launched USDC 12% annualized financial product. Although this subsidy strategy has led to a short-term decline in profit margins—RLDC profit margins dropped from 42% to 38%—it has indeed achieved significant results in market expansion.

It is worth noting that Circle has also announced an ambitious plan: to develop its own L1 public blockchain. This initiative may aim to reduce reliance on third-party distribution channels while creating new profit growth points by opening staking yields on its own chain.

Overall, Circle's financial report reflects the company's efforts to balance short-term gains with long-term development. While the current high interest rate environment has provided substantial income for the company, in the face of potential downward pressure on interest rates, Circle is also proactively positioning itself by expanding into markets and innovating technology to maintain its competitiveness in the stablecoin market. In the future, whether Circle can successfully navigate this balance will be a key focus for investors and industry observers.