Circle’s 2025 Review Details Stablecoin Growth and Rules

• USDC cap rose from $44B to $77B in 2025; EURC and USYC also grew under clearer regulatory frameworks globally.
• Circle gained conditional OCC approval for First National Digital Currency Bank, IPO strengthened disclosure compliance.
• Arc Layer-1 blockchain testnet launched, enabling faster settlement, cross-chain transfers and institutional participation.

Circle released its 2025 Year in Review, detailing regulatory, market, and infrastructure developments across global digital finance. The update, published in 2025, covers activities in the United States, Europe, and other regions. According to Circle, the changes followed new laws, an IPO, and expanded use of USDC, EURC, and USYC.

Regulatory Frameworks and Institutional Status

In 2025, several jurisdictions advanced rules for fully reserved digital currencies and onchain settlement. Notably, the United States enacted the GENIUS Act in July 2025. The law established legal standards for payment stablecoins backed by high-quality liquid reserves.

Circle also received conditional approval from the Office of the Comptroller of the Currency. The approval allows plans for First National Digital Currency Bank, N.A. However, final authorization remains pending. Earlier in 2025, Circle completed its IPO, reinforcing disclosure and governance requirements.

Outside the United States, Europe applied the Markets in Crypto-Assets regulation. Under MiCA, USDC and EURC operated as compliant stablecoins across all 27 EU members. Meanwhile, the Dubai Financial Services Authority approved both assets within its crypto token regime. Abu Dhabi Global Market also granted Circle a full Financial Services Permission.

Growth of USDC, EURC, and USYC

Against this regulatory backdrop, Circle reported significant growth in its digital assets. USDC market capitalization increased from $44 billion in January 2025 to $77 billion by December 23. During the same period, lifetime onchain transaction volume exceeded $50 trillion.

EURC also expanded under MiCA clarity. Its market capitalization rose from about €70 million to more than €300 million in 2025. Circle noted that EURC became the largest euro-denominated stablecoin under the EU framework.

USYC, Circle’s tokenized money market fund, also grew. Assets under management increased from $948 million in early November to $1.54 billion by December 23, 2025.

Applications and Arc Infrastructure Rollout

To support usage, Circle expanded applications tied to its digital assets. These included Circle Payments Network, StableFX and cross-chain transfer tools. According to Circle, these services enabled faster settlement and foreign exchange workflows.

In October 2025, Circle launched the public testnet for Arc. Arc operates as a Layer-1 blockchain designed for financial activity. The testnet included participation from banks, asset managers, exchanges, and payment firms.