Regulators around the world have also strengthened frameworks to oversee these digital assets, paving the way for their wider adoption, benefiting issuers like Circle.USDC circulation rose 72% from a year earlier to $75.3 billion in the fourth quarter, pushing total reserve income to $733 million.
“The key takeaway is that USDC continues to scale rapidly, at a pace that far outweighs the impact of interest rates. Circle is also becoming increasingly profitable over time,” said Seaport Research Partners analyst Jeff Cantwell.
USDC is a token pegged to the US dollar and backed by cash reserves and other low-risk assets that keep its market price close to the $1 benchmark.
The company invests the money received for the tokens issued in deposits and US government bonds, while pocketing the proceeds. Earnings are therefore very sensitive to the Federal Reserve’s interest rate actions. Circle recently signed major partnerships, including with payments giant Visa, allowing US institutions to settle transactions using USDC. It has also positioned itself in the prediction markets through a partnership with Polymarket.
During the quarter, Circle received preliminary approval to establish a national charter for trust banks, a key step that could further integrate digital assets into the banking system.
Total sales and reserve revenue rose 77% to $770 million, beating the average analyst estimate of $739 million, according to data compiled by LSEG.
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