Digital currency company Circle announced Wednesday that its fourth-quarter earnings climbed substantially, driven by growing use of its USDC stablecoin token, which pushed the company’s stock price up more than 14% before markets opened.
The digital currency has gained momentum thanks to supportive legislation like the GENIUS Act, which President Donald Trump signed last year to create federal guidelines for dollar-backed digital currencies.
International regulators have also been developing oversight structures for digital assets, creating opportunities for wider acceptance and helping companies like Circle expand their operations.
USDC functions as a digital token tied to the U.S. dollar’s value, supported by reserves including cash and secure investments like U.S. Treasury bonds that keep its price stable at approximately $1.
The amount of USDC in circulation jumped 72% compared to the previous year, reaching $75.3 billion during the fourth quarter and pushing reserve-based revenue to $733 million.
Circle generates income by putting the cash it receives for token purchases into secure investments such as Treasury bonds and bank deposits, then keeping the profits from those investments.
The company has recently formed important business relationships, including a deal with payment processor Visa that lets U.S. financial institutions use USDC for transaction settlements. Circle has also entered the prediction market space through a collaboration with Polymarket.
During the three-month period, Circle obtained initial approval to operate as a national trust bank, a significant development that could help bring digital currencies further into traditional banking.
Circle’s adjusted earnings before interest, taxes, depreciation and amortization reached $167 million for the fourth quarter, representing a 412% increase from the same period last year.
The total value of USDC transactions processed on blockchain networks surged 247% to $11.9 trillion.
