Circle Sees Revenue Jump as Stablecoin Demand Accelerates Amid Market Volatility

Circle's quarterly revenue has risen as stablecoin circulation accelerates, driven by increased adoption of its USDC stablecoin among businesses and institutions.

The demand for stablecoins strengthened during the quarter due to renewed Middle East tensions, which increased market volatility and prompted investors to shift funds from riskier crypto assets into stablecoins.

Circle's strategic partner, Coinbase, highlighted industry headwinds last week when it reported a slump in trading volumes. However, Circle's USDC circulation rose 19% in the second quarter to $73.3 billion, with on-chain transaction volume jumping 151% year-over-year.

The company's Chief Financial Officer, Jeremy Fox-Geen, has noted that Circle is built to navigate multiple interest rate cycles. The stablecoin issuer reported a net income of 18 cents per share attributable to common shareholders in the quarter ended June 30, exceeding analysts' estimates of 17 cents per share.