$Circle(CRCL) reported a rise in third-quarter revenue on Wednesday, on the back of higher reserve income through its flagship USDC as stablecoin circulation increased.
Global adoption of stablecoins — digital tokens backed by low-risk assets such as U.S. dollars or Treasuries — is gaining momentum as traditional financial firms roll out new offerings in the space and regulators worldwide move toward clearer rules.
The Trump administration, which pledged to position the United States as a global leader in cryptocurrency, enacted the Genius Act earlier this year, establishing a legal framework for regulating dollar-backed stablecoins aimed at enhancing the safety of digital payments.
Circle, which issues USDC, earns reserve income from investing the fiat reserves that back the stablecoin.
The circulation of USDC - backed by the U.S. dollar - more than doubled from a year earlier to $73.7 billion.
Circle reported total revenue and reserve income of $740 million in the three months ended September 30, compared with $446 million a year earlier.