Circle Internet Group, the issuer of the USDC stablecoin, reported a blockbuster fourth quarter, significantly exceeding analyst expectations. The company announced diluted earnings per share of $0.43, a 169% beat over the expected $0.16. Revenue and reserve income reached $770 million, surpassing estimates by 3%, while net income climbed to $133 million. Adjusted EBITDA saw a staggering 412% increase to $167 million.
The cornerstone of this growth is the explosive adoption of USDC. Its circulation ended the year at $75.3 billion, marking a 72% year-over-year increase. Onchain transaction volume for USDC hit $11.9 trillion in Q4, up 247% from the previous year. The market reacted swiftly, with Circle's shares jumping over 35% in premarket trading following the earnings release.
CEO Jeremy Allaire framed the results within a broader technological convergence, stating that "blockchain, stablecoins, and AI now operate as a combined system." He predicted a future where tens or hundreds of billions of AI agents will perform payments and treasury functions, requiring programmable digital dollars. Allaire highlighted Circle's infrastructure tools—Arc, the Cross-Chain Transfer Protocol (CCTP), StableFX, and the Circle Payments Network—as foundational for this automated, onchain economic activity.
In a parallel development, the Morph network announced a major integration focused on stablecoin settlement. Morph plans to support USDC on its network, issued directly by Circle's regulated entities, alongside integration with Circle's CCTP. This protocol allows USDC to move between blockchains using a burn-and-mint model, eliminating the need for wrapped bridge tokens and associated risks.
Morph's initiative is part of a strategic push to become a hub for onchain payments. The network has launched a $150 million Payment Accelerator to fund and support teams building high-volume payment systems. Morph emphasizes that using the official, directly-issued version of USDC provides developers and businesses with a simpler, more reliable settlement asset, crucial for use cases like payment gateways, cross-border remittance, and DeFi.
Circle's momentum is further evidenced by key partnerships, including Visa's support for USDC settlement for U.S. issuers and Stripe's reported benefit from rising stablecoin usage. The company's Arc public testnet has also processed over 166 million transactions with near-full uptime, showcasing the scalability of its infrastructure.
