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

Circle Internet Group (NYSE: CRCL) is the world's second-biggest stablecoin issuer. Price-wise, the company has had a rocky ride since its initial public offering (IPO) in June 2025. Initially priced at $31, Circle immediately jumped to $69 and soared to over $260 within weeks. As of Feb. 17, it is trading at around $62.

Down 76% from its high, Circle's performance does not compare well with top artificial intelligence (AI) stocks. Still, as investors start to fear AI overvaluation, this stablecoin provider is worth a closer look. Stablecoins -- tokens that represent traditional currencies, such as the U.S. dollar -- are soaring. Not only do they offer a meeting point for traditional finance and cryptocurrency, but they could also underpin AI agent payments. Here's how Circle is building the payment infrastructure for the future.

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Circle is a digital asset utility stock for an AI world

Circle Internet Group provides a compliant, audited stablecoin powerhouse as well as tokenization services. As more assets and transactions move on-chain, reputable providers will power that shift. Circle has partnerships with over 100 key players, including Visa, Deutsche Börse Group, and Itau. These position it to become the backbone of this emerging payment structure.

There is now $73.6 billion of Circle's USD Coin (CRYPTO: USDC) in circulation, up from $35.5 billion in the third quarter of 2024. Its biggest competitor, Tether (CRYPTO: USDT), is a long way ahead with $183.6 billion. However, Tether is complicated from a regulatory perspective as it has been dogged by questions over its reserves. Circle's reserves, on the other hand, are verified by a third-party auditor, making it more attractive to businesses with compliance requirements.

Another important aspect of Circle's emerging infrastructure is that stablecoins are already supporting AI agents, which can perform tasks autonomously. Blockchain technology enables fast, low-cost transactions that can take place 24/7, making it ideal for the types of micropayments AI agents need to make. The programmable nature of some blockchains also helps -- the code can set the conditions under which AI transactions might happen.

Circle underpins blockchain adoption

Right now, a lot of Circle's revenue comes from the interest it earns from its reserves. That totaled $740 million in Q3 2025, up 66% year over year. It has to keep funds in reserve for each stablecoin it issues, which makes for a solid income base. If stablecoin issuance soars, as many predict, that could significantly boost Circle's yield-generating reserves.

However, the company is also susceptible to falling interest rates, making diversification essential. Non-reserve revenue will be a key metric to watch when Circle reports its Q4 earnings on Feb. 25. It is already increasing its income from subscriptions, transactions, and services. In the future, fees from AI agent transactions could become a major revenue stream.

Circle has long-term potential, but it isn't yet a safe, defensive utility stock. It could face regulatory headwinds, its price is still closely connected to volatile cryptocurrency markets, and stablecoins remain relatively untested.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.