Circle has returned to profitability, recording a $48 million profit as demand for its USDC stablecoin continued to expand despite softer conditions across the broader cryptocurrency market.

The development highlights an important shift in the digital-asset industry: even when investors become cautious about volatile cryptocurrencies, demand for dollar-backed digital assets can remain remarkably resilient.

USDC circulation climbed 19% to $73.3 billion, demonstrating that stablecoins are increasingly being used for purposes beyond…