Circle’s Third-Quarter Revenue Soars Amid Stablecoin Demand

BENGALURU, India — Circle reported a 66% increase in third-quarter revenue Wednesday, fueled by growth in its USDC stablecoin as global demand rises.

The company, known for issuing the USDC digital currency, saw its revenue rise to $740 million for the three months ending September 30, compared to $446 million a year earlier. The boost comes as the circulation of USDC doubled over the past year, reaching $73.7 billion.

Circle’s success aligns with a growing global trend, as traditional financial firms expand their stablecoin offerings and governments seek to establish clearer regulations around digital currencies. This shift gained momentum after the U.S. enacted the Genius Act earlier this year, which seeks to enhance the security of digital payments.

Despite the revenue jump, Circle’s stock dropped 3% in pre-market trading. The company raised its adjusted operating expenses forecast for the year to between $495 million and $510 million, citing increased investments and payroll costs.

To offset expected revenue pressure from future rate cuts, Circle is diversifying its income sources. Earlier this year, it launched Arc, a dedicated public blockchain for stablecoin transactions, aimed at facilitating cross-border payments and integrating decentralized finance.

Circle’s net profit for the quarter was $214.4 million, a significant increase from $71 million the previous year. The ongoing development in the stablecoin sector signifies its critical role in the evolving financial landscape.