New York, Feb 26, 2026, 05:06 EST — Premarket
- Circle shares dipped roughly 0.4% in premarket trading, giving back some ground after their 35.5% surge in the previous session.
- Quarterly revenue surged for the stablecoin issuer, with USDC in circulation also on the rise.
- After Wednesday’s surge in volume, investors are eyeing the rate environment and whether buyers will keep stepping in.
Circle Internet Group slipped 0.4% to $82.81 in premarket trading Thursday, following a sharp 35.47% surge that took the stablecoin company’s stock to $83.14 at Wednesday’s close. More than 63 million shares changed hands during that session, according to Investing.com.
This is significant: Circle stands out as one of the rare U.S.-listed plays that mirrors stablecoin adoption. Dollar-linked crypto tokens, designed to keep their value stable, are showing up more and more in payments and settlements, beyond just trading.
The move throws fresh attention on Washington’s efforts to regulate stablecoins, right as banks and payments companies experiment with using them for transfers beyond standard banking hours.
Circle reported a 77% jump in fourth-quarter total revenue and reserve income, reaching $770 million. Net income from continuing operations landed at $133 million for the period. Adjusted EBITDA came in at $167 million, with the company sticking to its long-term goal of 40% compound annual growth for USDC in circulation. “The fourth quarter marked another step forward in Circle’s mission,” CEO Jeremy Allaire said in the earnings release. (SEC)
Reserve income remains the key story here—Circle pulls in interest by parking USDC’s backing cash in short-term U.S. Treasuries and deposits. USDC in circulation jumped 72% year-over-year to hit $75.3 billion for the quarter, Reuters said, pushing reserve revenue up to $733 million and letting Circle beat the Street’s revenue estimates. “USDC continues scaling rapidly,” noted Seaport Research Partners analyst Jeff Cantwell. As for rates, CEO Jeremy Allaire told Reuters he’d “welcome” cuts, pointing out that “high rates… slow down the velocity of money.” (Reuters)
Circle keeps urging investors to look past rates. The company highlighted moves on Arc, its blockchain push, and noted that as of Feb. 20, Circle Payments Network counted 55 financial institutions onboard, with another 74 still in eligibility review.
Allaire pushed back on the idea that stablecoin rails are just a sideshow in prediction markets, calling them a feature. “People want to be able to move quickly,” he said, responding to a question about platforms like Polymarket, per a Benzinga report from the earnings call. (Benzinga)
Circle’s USDC stands as the second-biggest stablecoin globally by market value, trailing only Tether’s USDT. The company faces tough competition, with an increasing number of dollar-backed tokens entering the space. (Barron’s)
Still, the stock’s post-earnings bounce is riding on a single factor: USDC growth needs to keep up, even if interest rates come down. Should circulation slow, or if yields slip more quickly than stablecoin balances increase, reserve income could tighten. That would turn the “rates trade” in the stock against those holding it.
Circle’s updates aside, attention shifts to Friday’s 8:30 a.m. ET release of U.S. producer price figures—a fresh batch of inflation signals that could steer expectations for interest rates. (Bureau of Labor Statistics)
Coming up, the Federal Reserve’s policy meeting on March 17-18 stands out, with a rate decision and a press conference set for March 18. (federalreserve.gov)
