Circle’s earnings pop, stock drops - what it means for fintech and crypto plays

Intro

Today we are talking about Circle Internet Group, ticker $CRCL. The company just posted very strong Q3 numbers, with revenue up sharply and earnings beating expectations, powered by massive growth in its USDC stablecoin business. But despite that, the stock dropped around 10 percent as investors focused on two things: worries that falling interest rates will shrink its interest income, and higher spending guidance that could squeeze margins.

Winners

Card networks using stablecoins in payments

Reason: If USDC and other stablecoins keep growing, the big card networks that integrate them into cross border and B2B payments can benefit from higher payment volumes and new fee streams, without relying directly on inte ...