Key facts
- Circle's second-quarter revenue increased due to higher adoption of its USDC stablecoin.
- Demand for stablecoins rose amid increased market volatility.
- Circle's revenue and reserve income grew 7% to $701.3 million for the quarter ended June 30.
- In the fourth quarter, Circle's revenue and reserve income rose 77% to $770 million, exceeding analyst expectations.
- USDC circulation increased 72% year-over-year in the fourth quarter, reaching $75.3 billion.
- Total on-chain transaction volumes for USDC surged 247% to $11.9 trillion.
Circle reported an increase in its second-quarter revenue, attributed to the growing use of its USDC stablecoin by businesses and institutions. The company's income from reserves also saw a boost, particularly in the fourth quarter, as circulation of USDC accelerated.
Amidst renewed Middle East tensions, market volatility prompted investors to move funds from riskier crypto assets into stablecoins like USDC, which is designed to maintain a fixed value against the U.S. dollar. USDC is the second-largest dollar-backed stablecoin globally, behind Tether's USDT.
Circle's revenue and reserve income rose 7% to $701.3 million in the quarter ending June 30. In a separate period, Circle surpassed fourth-quarter revenue expectations, with reserve income reaching $733 million due to increased USDC circulation. This circulation grew 72% year-over-year to $75.3 billion in the fourth quarter, contributing to a 77% rise in total revenue and reserve income to $770 million. On-chain transaction volumes for USDC in the fourth quarter surged 247% to $11.9 trillion.
The company benefits from investing cash reserves in low-risk assets like U.S. treasuries and deposits, earning yield on these holdings. Recent partnerships, including one with Visa for transaction settlements using USDC and a tie-up with prediction market Polymarket, have expanded its use cases. Circle also received preliminary approval for a national trust bank charter, potentially integrating digital assets further into the banking system.