What drove Circle's revenue increase in the fourth quarter?

Circle's fourth-quarter revenue increased due to a boost in income from reserves, which was positively impacted by a rise in the circulation of its stablecoin, USDC.

How much did USDC circulation grow, and what was the revenue impact?

USDC circulation rose by 72% from a year earlier to $75.3 billion in the fourth quarter, lifting total revenue from reserves to $733 million.

What significant regulatory or banking approval did Circle receive?

During the fourth quarter, Circle received preliminary approval to establish a national trust bank charter, a move that could further integrate digital assets into the banking system.

Home / Business and Economy / Stablecoin Surge: Circle Reports Major Q4 Revenue Jump

Stablecoin Surge: Circle Reports Major Q4 Revenue Jump

25 Feb

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Summary

Circle's fourth-quarter revenue increased due to higher USDC circulation.
USDC circulation rose 72% year-over-year to $75.3 billion.
Circle gained preliminary approval for a national trust bank charter.

Stablecoin Surge: Circle Reports Major Q4 Revenue Jump

Circle reported a substantial increase in its fourth-quarter revenue, attributing the growth primarily to a rise in the circulation of its stablecoin, USDC. This expansion in USDC usage has been facilitated by supportive regulatory developments.

Favorable regulations, such as the GENIUS Act, have established a federal framework for dollar-pegged stablecoins. As of the fourth quarter, USDC circulation surged by 72% compared to the previous year, reaching $75.3 billion. This elevated the total revenue generated from reserves to $733 million.

The company earns revenue by investing the cash reserves backing its tokens in low-risk assets like U.S. treasuries and deposits, capturing the yield. During the quarter, Circle also achieved a significant milestone by receiving preliminary approval to establish a national trust bank charter.

Circle's adjusted earnings before interest, taxes, depreciation, and amortization for the fourth quarter were $167 million, marking a 412% increase from the prior year, reflecting the company's robust financial performance.

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