Circle quarterly revenue rises on stablecoin growth

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Circle quarterly revenue rises on stablecoin growth
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(Reuters) -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.

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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. Sign up for Yahoo Finance Daily Movers By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy

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(Reporting by Arasu Kannagi ‌Basil and Pritam Biswas in Bengaluru; Editing ‌by Krishna Chandra Eluri)

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