Circle Q4 revenue jumps 77% to $770m

Circle Internet Group, the issuer of the USDC stablecoin, exceeded Wall Street revenue expectations for Q4, with total revenue rising 77% to US$770 million, according to data from LSEG.

The company’s reserve income increased as USDC circulation grew 72% year-on-year to US$75.3 billion, boosting reserve revenue to US$733 million.

USDC’s growth aligns with recent regulatory developments, such as the GENIUS Act, which provides a federal framework for dollar-pegged stablecoins.

Circle invests the proceeds from its tokens into U.S. Treasuries and deposits, making its income sensitive to Federal Reserve interest rate changes.

CEO Jeremy Allaire noted that rate cuts could foster more adoption and circulation, as high rates tend to slow money velocity.

In December, Circle received conditional approval to establish a national trust bank, potentially integrating digital assets further into the banking system.

The company’s shares rose nearly 30% in afternoon trading after the earnings report.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Circle is building revenue beyond treasury holdings

Reserve income still matters, yet Circle is adding other lines of business. It brought in $37 million in Q4 from subscription and services revenue, including blockchain network partnerships, plus transaction revenue, including blockchain rewards revenue tied to running a super validator on the Canton Network, a blockchain designed for regulated financial institutions 1.
USDC use for real transactions is rising. On-chain USDC volume jumped 247% year over year to nearly $12 trillion in the fourth quarter 2.
Visa’s published analysis filters out internal transactions, exchange wallet rebalancing, and bots. Management said Circle’s share of transaction volume rose from 39% in Q3 to nearly 50% in Q4 under that method 1.

Circle’s bank charter marks progress while rules keep changing

Circle received conditional Office of the Comptroller of the Currency (OCC) approval on December 12, 2025. It was one of five digital asset firms, including Ripple and Fidelity Digital Assets, to get the same approval 3.
The move leans toward federal oversight for some digital-asset firms. Regulators are still writing rules required by the GENIUS Act, which provides a federal framework for dollar-pegged stablecoins 4. Approval can speed adoption, yet it also brings tighter supervision 3.