Circle shares jump on strong Q4 results

Circle reported a sharp increase in fourth-quarter revenue on Wednesday, driven by higher income from reserves as circulation of its stablecoin, USD Coin, expanded significantly.

The results pushed the company’s shares up more than 14% in premarket trading, News.Az reports, citing Reuters.

The digital token has seen accelerating adoption amid a more supportive regulatory environment. In the United States, the GENIUS Act — signed into law last year by President Donald Trump — established a federal framework for dollar-pegged stablecoins. Regulators in other jurisdictions have also strengthened oversight of digital assets, creating clearer operating conditions and supporting broader market acceptance, benefiting issuers such as Circle.

USDC is pegged to the U.S. dollar and backed by reserves consisting of cash and other low-risk assets, including U.S. Treasuries. These reserves are designed to keep the token’s market value close to its $1 benchmark.

In the fourth quarter, USDC circulation climbed 72% compared with a year earlier, reaching $75.3 billion. The increase boosted total revenue generated from reserves to $733 million. Circle earns income by investing funds received in exchange for issued tokens into low-risk instruments such as U.S. Treasuries and bank deposits, retaining the yield generated by those investments.

The company has recently secured several strategic partnerships. These include an agreement with payments giant Visa, enabling U.S. institutions to settle transactions using USDC. Circle has also expanded into prediction markets through a partnership with Polymarket.

During the quarter, Circle received preliminary approval to establish a national trust bank charter — a significant step that could deepen the integration of digital assets into the traditional banking system.

Financially, the company reported fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $167 million, marking a 412% increase from the same period a year earlier.

Meanwhile, total on-chain transaction volumes in USDC surged 247% year-on-year to $11.9 trillion, underscoring the growing scale and usage of the stablecoin across digital markets.

News.Az 

By Nijat Babayev