Digital asset firm Circle Internet Corp. reported on the 11th that its total revenue and reserve earnings for the first quarter reached $694 million, representing a 20% year-over-year increase, propelled by the continued global adoption of stablecoins. This positive performance lifted its stock price by nearly 5% in pre-market trading that day.

The financial report indicated that by the end of the first quarter, the circulation of Circle's core product, the USDC stablecoin, had risen to $77 billion, a 28% increase compared to the same period last year. Market analysis suggests that heightened volatility in international financial markets and ongoing geopolitical conflicts in the Middle East this year have driven risk-averse capital away from highly volatile cryptocurrencies toward stablecoins, which are pegged to fiat currencies. Furthermore, the implementation of Europe's Markets in Crypto-Assets (MiCA) regulation and the passage of the U.S. GENIUS Act have accelerated a trend of market funds shifting toward regulated digital assets. A recent report from cryptocurrency exchange Coinbase, which has a strategic partnership with Circle, showing a decline in trading volume, also indirectly corroborates this structural shift in capital flows.

Macro-monetary policies have a direct impact on the balance sheets and earnings of stablecoin issuers. As Circle primarily invests the cash reserves raised from its coin issuance in bank deposits and short-term U.S. Treasury securities to earn interest, its revenue is highly sensitive to the Federal Reserve's interest rate policies. The rate-cutting cycle initiated at the end of 2025 has objectively improved the company's asset allocation environment. Circle CEO Jeremy Allaire previously emphasized from a business operations perspective that if borrowing costs decrease further in 2026, it would have a positive effect on the company's development.