Circle's Stablecoin Adoption Boosts Revenue Amid Market Volatility

Circle's quarterly revenue rose as stablecoin circulation accelerated in the second quarter. The company reported $701.3 million in revenue, a 7% increase from the previous quarter.

The growth was driven by increased adoption of Circle's USDC stablecoin, which saw its circulation rise 19% to $73.3 billion during the quarter. On-chain transaction volume for USDC jumped 151% year-over-year.

However, the reserve return rate, or the yield generated by cash and short-term U.S. Treasuries backing USDC, dropped by 66 basis points in the second quarter to 3.5%. Despite this, higher circulation volumes helped offset the drop in returns.