I just watched the first financial report after Circle went public.

On one hand, after expanding the issuance volume, they can take advantage of the current high interest rates from the Federal Reserve to earn more interest, which brings in 96% of their revenue. The downside is that the Federal Reserve may lower interest rates in the future.

On the other hand, to expand the issuance volume, they provided more distribution subsidies to exchanges like Coinbase and Binance. The 12% annualized financial promotion of $USDC during this time came from that.

Overall, the losses from the subsidies are still expanding, with the RLDC profit margin dropping from 42% to 38%, but these subsidies have indeed shown some results.

However, my friend, they've also drawn a very big plan; they want to create their own L1 public chain, probably to reduce distribution pressure and open up staking yield opportunities on their own chain.