Stablecoin Issuer Circle Sees 77% Revenue Growth, Shares Surge

Circle Internet Group, the second-largest global issuer of stablecoins, reported a significant increase in revenue in the fourth quarter. The company's stock price rose by over 35% after it announced that its reserve income surged 69% year-over-year to $733 million.

The growth is attributed to the increasing demand for Circle's USDC stablecoin, which saw a 72% increase in circulation. The average amount of USDC in circulation grew by 100%, contributing to the revenue increase. Additionally, the on-chain transaction volume of USDC reached $11.9 trillion, a 247% increase from the previous year.

Circle's CEO Jeremy Allaire stated that the fourth quarter marked another step forward in the company's mission to build an open and programmable internet financial system. The growth is seen as a sign that demand for stablecoins remains strong despite the downturn of the broader crypto market.