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Rising USDC Adoption to Aid Circle Stock: What's the Path Ahead?

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Key Takeaways

  • {\"0\":\"Circle\'s USDC in circulation hit $72.36B in Sept., up from $65.2B in Aug. and $61.3B in Q2 2025.\\r\\n\",\"1\":\"Partnerships with Fireblocks, Finastra, and FIS expand USDC use in payments and settlement flows.\\r\\n\",\"2\":\"Circle\'s Q2 2025 revenues rose 53% to $658.1M, while shares fell 4.8% over the past month.\\r\\n\"}

Circle Internet Group (CRCL - Free Report) is benefiting from the strong adoption of the USDC stablecoin. As of Sept. 11, $72.36 billion USDCs were in circulation, rising from $65.2 billion as of Aug. 10, 2025, and $61.3 billion at the end of the second quarter of 2025. 

An improving regulatory environment, including the passage of the GENIUS Act, provides a legal background to stablecoins like USDC, paving the way for more enterprise adoption. This bodes well for Circle, which has minted USDC worth $42.2 billion, up 21% year over year, in the second quarter of 2025. The company redeemed USDC worth $40.8 billion, up 17% year over year. Meaningful wallets, defined as wallets holding more than $10 of USDC, surged 68% year over year as USDC adoption continues to expand globally.

An expanding partner base that includes the likes of Binance, Corpay, FIS, Fiserv, OKX, Finastra and Fireblocks is noteworthy. Circle recently inked a partnership with Fireblocks, under which the former’s stablecoin network will complement Fireblocks’ custody and payments infrastructure tools to provide cross-border treasury and tokenization asset settlement. The partnership with Finastra now enables banks to integrate USDC settlement into cross-border payment flows. FIS and Circle are enabling U.S. financial institutions to offer their customers the option to make domestic and cross-border stablecoin payments using USDC.

These factors are expected to drive Circle’s top-line growth. In second-quarter 2025, Circle reported total revenues and reserve income of $658.1 million, up 53% year over year. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $686.4 million and $2.63 billion for 2025.

 

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Image Source: Zacks Investment Research

 

Circle Faces Tough Competition

Circle faces stiff competition from the likes of Strategy (MSTR - Free Report) and IREN Limited (IREN - Free Report) in the cryptocurrency space. 

Strategy is the world’s largest bitcoin treasury company, holding 638,460 bitcoins as of Sept. 7, 2025. The liberal policies of U.S. President Donald Trump have been a key catalyst in driving the adoption of bitcoin. Strategy now expects to achieve a bitcoin yield of 30% and $20 billion in gains, assuming the bitcoin price hits $150,000 at the end of the year.

IREN Limited is one of the world’s lowest-cost bitcoin miners, achieving 326% year-over-year hashrate growth in the third quarter of fiscal 2025. IREN Limited is expanding its GPU fleet with the purchase of an additional 4.2k Blackwell B200 GPUs from NVIDIA, which doubled its total fleet to approximately 8.5k NVIDIA GPUs.

Share Price Performance, Valuation & Estimates

Circle shares have declined 4.8% in the past month, underperforming the broader Zacks Finance sector’s return of 2.5%.

CRCL Stock’s Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The CRCL stock is trading at a premium, as suggested by the Value Score of F.

The Zacks Consensus Estimate for 2025 earnings is pegged at a loss of $2.13 per share, significantly wider than the 3 cents of loss over the past 30 days.
 

 

 

Circle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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