Circle's USDC Stablecoin Sees Record Adoption Amid Market Volatility
Circle, a leading stablecoin issuer, reported higher quarterly revenue driven by increased adoption of its USDC stablecoin. The company's shares rose 7.7% after the announcement.
The growth was fueled by increased demand for stablecoins during the quarter as investors sought safer assets amidst market volatility caused by renewed Middle East tensions. This trend is expected to continue, with Wall Street predicting that stablecoins will become a key theme in finance within the next few years.
Circle's USDC circulation rose 19% in the second quarter to $73.3 billion, while its onchain transaction volume jumped 151% year-on-year. However, the reserve return rate dropped by 66 basis points to 3.5%, offset by higher circulation volumes.
The company also received approval for a U.S. national trust bank charter, allowing it to operate under federal oversight and reinforcing its push to serve institutional customers. Circle's revenue and reserve income rose 7% to $701.3 million in the quarter ended June 30, with net income of 18 cents per share attributable to common shareholders.