Circle shares surge after surprise earnings beat shows strong demand for stablecoins | Fortune

"Overall, the underlying use cases of USDC are accelerating despite crypto price headwinds. Circle, the second-largest global issuer of stablecoins, said in the statement that major companies like Visa and Polymarket are adopting its infrastructure. The company also said that it is partnering with Bermuda's government to make the country the world's first fully onchain national economy."

"Circle's growth is a sign that demand for stablecoins remains strong despite the broader crypto market's downturn, as the company reported that the amount of USDC in circulation ticked up about 72% compared to last year. The current market cap for USDC is around $75 billion. Stablecoins, a type of cryptocurrency pegged to a fiat currency, have become increasingly popular in the past year, as a wide array of companies use them to transfer money."

"As a stablecoin issuer, Circle makes most of its income by investing its users' funds in short-term U.S. treasuries. This means that its revenue is vulnerable to any move by the Federal Reserve to lower interest rates. The company has invested in creating its own blockchain, called Arc, to diversify its revenue stream."

Circle, the second-largest global stablecoin issuer, reported a 77% revenue increase in Q4 compared to the previous year, with USDC circulation rising 72% to a $75 billion market cap. The company's strong performance indicates sustained demand for stablecoins despite broader crypto market challenges. Circle generates revenue primarily by investing user funds in short-term U.S. treasuries and is diversifying through its own blockchain, Arc. Major companies including Visa and Polymarket are adopting Circle's infrastructure. The company is also partnering with Bermuda's government to develop the world's first fully onchain national economy. Circle's stock surged 250% in its first two trading days after going public in June.

Read at Fortune