Backing the Buck: Circle Internet Group’s Business Model and the Economics of USDC

Name: Backing the Buck: Circle Internet Group’s Business Model and the Economics of USDC (English version)
SKU: W48895

Sa-Pyung Sean Shin, Seil Kim

Product #:W48895

Supplier:Ivey/NUS

Discipline:Accounting, Finance

Setting:2025

Details:Case (PDF) • 17 pages • 2026-05-26

Subjects:

Finance and investing Accounting

Industries:

Financial service sector

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$9.71

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Circle Internet Group Inc. (Circle) debuted on the New York Stock Exchange on June 5, 2025, reaching a $63 billion valuation. As the issuer of USDC, Circle managed $65 billion in digital dollars, generating revenue primarily through interest on US Treasury reserves. However, the company faced a fundamental dilemma: high interest rates drove profits but increased the opportunity cost for users, while falling rates squeezed margins. Additionally, Circle had to navigate a complex revenue-sharing pact with Coinbase Global Inc. and competition from Tether Limited.

Using Circle's financial statements and accounting for the impact of the GENIUS Act and the operational risks highlighted by the Silicon Valley Bank collapse, a financial analyst had to assess the sustainability of Circle's business model and the risks it faced.

Learning Objectives

This case is appropriate for intermediate financial accounting and financial statement analysis courses at the undergraduate and graduate levels.

The primary objective of the case is to help students understand the business model of stablecoins, the model’s strengths and weaknesses, and the accounting treatment of stablecoins. Working through the case allows students to do the following:

Understand the stablecoin business model and how it is reflected in financial statements.
Discuss the competitive environment surrounding the stablecoin business and related payment businesses.
Examine best practices for accounting for stablecoin holdings.