さこんび : I asked Gemini how this would lead to revenue.
Circle's rise to the top in the tokenized U.S. Treasury market provides significant benefits by strengthening and diversifying its revenue structure.
I will explain the three main routes through which this translates into revenue.
1. Earning management fees (management compensation)
The most direct source of revenue is the fund’s management fee.
• Mechanism: When investors deposit funds into Circle’s tokenized U.S. Treasury fund 'USYC,' Circle charges a management fee based on a percentage of the assets under management (AUM), for example, an annual rate of 0.3% to 0.5%.
• Impact on revenue: The fact that the market size has expanded to 1.7 trillion yen and Circle holds the largest share means that assets under management have increased, leading to a surge in 'stable fee income.'
2. Strengthening the USDC ecosystem and increasing issuance balances
Circle's flagship product is the stablecoin 'USDC,' and tokenized U.S. Treasuries directly boost demand for USDC.
• 'Can only be purchased with USDC' system: In many cases, when investors buy or redeem tokenized U.S. Treasuries (USYC), USDC is used as the settlement currency.
• Increase in float (investment returns): When investors continue to hold USDC to buy USYC, the overall market capitalization of USDC is maintained and expanded. Circle manages the backing assets of USDC (such as cash and short-term government bonds) and the interest income generated from this is the company’s largest source of revenue.
3. Platform usage fees for institutional investors
Circle not only sells tokens but also provides infrastructure for managing and trading them.
• Expansion of corporate services: Through corporate platforms like 'Circle Mint,' they offer 24/7 issuance and redemption functionality. System usage fees and transaction fees from institutional investors using this service also contribute to their revenue.
• Cross-selling (bundled sales): By offering customers using U.S. Treasury token services additional options such as Web3 wallet technology or management services for other RWA (real-world asset) tokens, Circle can increase the average revenue per customer.
Conclusion: Why is this the 'path to victory'?
The traditional Circle business model was based on earning profits through interest from USDC's backing assets when interest rates rose, which made it somewhat dependent on market interest rate fluctuations.
However, by owning an investment product called 'tokenized U.S. Treasuries':
1. When interest rates are high: The investment product 'USYC' sells well, generating commission income.
2. When interest rates are low: The convenience of 'USDC' as a settlement method becomes prominent, increasing its circulation.
In this way, the successful construction of **“a structure that can continue to generate revenue as a financial infrastructure on the blockchain, regardless of interest rate conditions”** represents a significant strategic victory for Circle.

さこんび : If this happens every time, we’ll be up +200% and hitting new highs by the end of the year lol