Circle announced a sharp increase in fourth-quarter revenue, fueled by a surge in its stablecoin, USDC, circulation. Income from reserves climbed significantly.
The digital token's adoption is accelerating, supported by favorable U.S. regulations like the GENIUS Act, which established a federal framework for dollar-pegged stablecoins. Global regulators are also enhancing oversight, promoting broader acceptance.
USDC, pegged to the U.S. dollar, is backed by cash and low-risk assets, maintaining its $1 value. In the fourth quarter, USDC circulation grew 72% year-over-year to $75.3 billion, boosting total reserve revenue to $733 million.
Circle generates revenue by investing these token-backed funds in U.S. treasuries and deposits, retaining the yield. The company also secured preliminary approval for a national trust bank charter, a key step toward integrating digital assets into traditional banking.
Circle's fourth-quarter adjusted EBITDA surged 412% to $167 million.