Forget AI Stocks: This Stablecoin Provider Is the Utility Stock of Digital Assets

Core Viewpoint - Circle Internet Group is positioned as a significant player in the stablecoin market, with potential to support future payment infrastructures, particularly in relation to AI transactions [1][4]. Group 1: Company Overview - Circle is the world's second-largest stablecoin issuer, with a current market cap of $15 billion and a trading price of approximately $63.02 [2]. - The company has experienced significant price volatility since its IPO in June 2025, with a peak price of over $260 and a current price down 76% from that high [2][5]. - Circle's USD Coin (USDC) circulation has increased to $73.6 billion, up from $35.5 billion in Q3 2024, although it still trails behind Tether's $183.6 billion [5]. Group 2: Business Model and Revenue - Circle generates substantial revenue from interest on reserves, totaling $740 million in Q3 2025, reflecting a 66% year-over-year increase [7]. - The company is diversifying its revenue streams, focusing on subscriptions, transactions, and services, with potential future income from AI agent transaction fees [8]. Group 3: Market Position and Partnerships - Circle has established partnerships with over 100 key players, including Visa and Deutsche Börse Group, positioning it as a backbone for emerging payment structures [4]. - The company’s reserves are verified by a third-party auditor, enhancing its attractiveness to businesses with compliance needs compared to competitors like Tether [5]. Group 4: Technological Integration - Circle's stablecoins are already facilitating AI agent transactions, leveraging blockchain technology for fast, low-cost, and programmable micropayments [6]. - The programmable nature of blockchains allows for setting conditions for AI transactions, which is crucial for the evolving digital economy [6].