Circle Internet Financial, the issuer of the USDC stablecoin, reported strong revenue figures for the second quarter following its initial public offering (IPO) on Tuesday, with its newly listed stock CRCL rising 5%.
USDC circulation increased by 90% year-over-year.
On Tuesday, Circle's CRCL stock price rose to $164, occurring after the recent passage of the GENIUS Act by Congress and the House of Representatives, which has drawn more attention to stablecoins and their applications in financial markets.
CFO Jeremy Fox-Geen stated that the company is experiencing a surge in institutional interest, saying, "After our IPO and the (Genius Act), we have seen an increase in interest, with major institutions joining in."
Three weeks ago, President Donald Trump signed the United States' first cryptocurrency bill. The legislation aims to establish a new regulatory framework for cryptocurrencies pegged to the dollar.
As a result, major companies and U.S. banks are increasingly interested in these assets, which could significantly improve considering the low costs and speed of stablecoin transactions.
As of June 30, the circulation of USDC surged 90% compared to the same period last year, and Circle expects it to continue growing at a compound annual growth rate of 40%.
CEO Jeremy Allaire pointed out that the USDC stablecoin is gaining increasing attention not only for its use in digital transactions but also for cross-border remittances between individuals and businesses.
Circle reported a 53% increase in revenue.
Circle reported a 53% year-over-year increase in revenue, reaching $658 million. According to Reuters, this growth was primarily due to increased interest income from cash reserves and short-term investments supporting its USDC stablecoin.
Additionally, subscription and service revenues from stablecoin issuer platforms have also risen, exceeding analyst expectations of $644.7 million compiled by the London Stock Exchange.
However, the company did report a net loss of $482 million, mainly attributed to non-cash expenses related to its initial public offering.
Circle also announced plans to launch a public blockchain called Arc this fall, designed specifically for stablecoin trading, which is part of the company's strategic infrastructure for developing digital payments.
David Bartosiak, a stock strategist at Zacks Investment Research, commented on Circle's goals, stating, "They really want to become the pillar of stablecoins in the U.S." He emphasized that the company's good reputation makes it a trusted participant in this emerging market.
Despite the rise in stock prices, CEO Jeremy Allaire stated that Circle remains cautious about acquisitions. "We are cautious and thoughtful. I believe our strategy is not to try to expand our business lines through large-scale, complex acquisitions," he said.
