Circle said its fourth-quarter revenue rose as income generated from its reserves benefited from a marked increase in circulation of its USDC stablecoin. The company credited stronger adoption of the dollar-pegged token with lifting returns tied to the assets backing the token.
USDC is designed to maintain a value close to one U.S. dollar. That peg is supported by reserves made up of cash and other low-risk instruments, including U.S. treasuries, which are intended to keep the token's market price near the $1 benchmark.
During the fourth quarter, circulation of USDC increased by 72% compared with the same period a year earlier, reaching $75.3 billion. That growth translated into higher revenue from the firm’s reserve portfolio, which rose to $733 million for the quarter. Circle generates this revenue by investing the cash it receives in exchange for issued tokens into low-risk assets such as U.S. treasuries and deposits and retaining the yield on those investments.
Circle reported fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $167 million, representing a 412% rise from the year-earlier quarter.
Regulatory developments have coincided with the stablecoin's rise. The GENIUS Act, signed into law by U.S. President Donald Trump last year, established a federal framework for dollar-pegged stablecoins, creating conditions that the company says support broader adoption. Regulators in other jurisdictions have also been strengthening the frameworks used to oversee digital assets, a trend that market participants say can facilitate wider use and benefit issuers like Circle.
In the quarter, Circle received preliminary approval to form a national trust bank charter. The firm described the approval as a significant step that could help further integrate digital assets within the banking system.
Contextual note: The information above reflects the company’s reported fourth-quarter performance, its stated business model for generating yield from reserves, and recent regulatory and charter developments referenced by the firm.