Circle reported strong fourth-quarter results, and it widened the measurable gap in the regulated stablecoin market. The company posted sharp revenue growth, and USDC circulation reached new highs. Meanwhile, Ripple’s RLUSD operates from a far smaller base, and the contrast highlights shifting scale dynamics in dollar-backed tokens.

USDC Expands Revenue Base and On-Chain Footprint

Circle Internet Group increased total revenue and reserve income by 77% year over year in the fourth quarter of 2025. The company generated $770 million, and reserve income accounted for $733 million of that figure. Moreover, reserve income rose 69% from the prior year, even as yields moderated.

USDC’s average circulation doubled during the period, and that expansion supported higher aggregate reserve balances. However, reserve yield declined to 3.8%, reflecting a 68 basis point drop. Even so, larger balances offset lower yields, and overall income continued to grow.

Distribution costs without revenue climbed 136% to $309 million, yet margins improved to 40%. Net income from continuing operations reached $133 million, and adjusted EBITDA rose 412% to $167 million. As a result, Circle strengthened its operating profile while scaling distribution.

USDC closed 2025 with $75.3 billion in circulation, marking a 72% annual increase. In addition, on-chain transaction volume hit $11.9 trillion in the fourth quarter alone. That figure represented a 247% surge, and it underscored rising usage across exchanges and payment channels.

Circle issues USDC as a regulated dollar-backed stablecoin, and it holds reserves in cash and short-duration instruments. The company positions USDC as a compliance-focused alternative within the stablecoin sector. Consequently, growth in circulation directly expands reserve income capacity and reported earnings power.

RLUSD Operates from Smaller Capital Base

Ripple introduced RLUSD to expand its stablecoin presence within global payments and exchange markets. However, RLUSD’s market capitalization stands at $1.56 billion. Daily trading volume remains around $124 million, and that scale limits reserve income potential compared with USDC.

Unlike Circle, Ripple remains privately held, and it does not publish detailed quarterly financial statements. Therefore, direct profitability comparisons remain limited by available disclosures. Even so, the difference in circulating supply creates a clear quantitative contrast.

Stablecoin economics rely on reserve balances and prevailing yields, and larger supplies generally produce higher income. Because RLUSD circulates at a fraction of USDC’s size, its reserve base remains smaller. As a result, operating leverage and reported earnings capacity trail behind USDC’s scale.

Ripple integrates RLUSD into its broader payments network, leveraging established exchange relationships. The company built its reputation on cross-border settlement infrastructure, and RLUSD extends that model into dollar liquidity. Nevertheless, current data show that adoption levels remain significantly lower than those of USDC.

Market observers previously speculated about potential consolidation within the stablecoin segment, including reports about possible acquisition discussions. However, no confirmed transaction has reshaped the competitive landscape. Instead, current standings reflect organic growth and differing starting points.

USDC’s dominance rests on circulation size, reserve economics, and transparent reporting metrics. Meanwhile, RLUSD operates within Ripple’s global framework but from a narrower capital base. The competitive gap, therefore, reflects measurable differences in supply and income rather than structural capability constraints.