Circle sees revenue boost as stablecoin demand rises amid volatility; shares up

Reuters

Mon, May 11, 2026 astatine 5:30 AM CDT 2 min read

May 11 (Reuters) - Circle connected Monday reported higher quarterly gross and reserve income driven by accrued adoption and circulation of its stablecoin, sending ‌its shares rising astir 5% successful trading earlier the bell.

Market volatility ‌and the Middle East struggle pushed investors to rotate retired of cryptocurrencies and into stablecoins to ​park superior earlier this year.

This was underscored by cryptocurrency speech Coinbase's results past week, which reported dropping trading volumes. Coinbase has a strategical concern with Circle.

The rollout of Europe's MiCA model and the passing of the U.S. GENIUS Act steered users ‌toward regulated integer assets, ⁠boosting the adoption of USDC, Circle's flagship stablecoin and the world's second-largest by marketplace worth aft Tether.

The token is pegged to ⁠the U.S. dollar, backed by reserves of currency and different low-risk assets that tether its marketplace terms adjacent to the benchmark of $1.

Circulation of USDC roseate 28% from a ​year ​earlier to $77 cardinal astatine the extremity of ​the archetypal quarter. Total gross and ‌reserve income grew 20% to $694 million.

Wall Street expects stablecoins to go 1 of the biggest themes wrong concern successful the coming years and the adjacent multi-trillion-dollar marketplace opportunity.

Rate cuts precocious successful 2025 besides benefited the company, arsenic Circle invests the currency backing its tokens successful slope deposits and short-dated U.S. Treasuries, earning ‌interest connected those holdings. As a result, its ​income is highly delicate to argumentation changes by ​the U.S. Federal Reserve.

CEO Jeremy ​Allaire had told Reuters that a further simplification successful borrowing ‌costs successful 2026 would beryllium "welcome" from ​Circle's concern perspective.

The steadfast ​went nationalist successful a stellar debut connected the New York Stock Exchange past year, paving the mode for akin companies to trial their luck ​in the nationalist markets.

Circle's ‌shares closed astatine $113.67 connected Friday, up astir 43% twelvemonth to day ​and much than 3 times their IPO terms of $31.

(Reporting by Pritam ​Biswas successful Bengaluru; Editing by Pooja Desai)