Key Highlights

● USDC in circulation stood at $73.3 billion, up 19% year on year.

● Total revenue and reserve income rose 7% to $701 million.

● Net income from continuing operations was $48 million.

● USDC on-chain transaction volume reached $14.8 trillion, up 151%.

Circle Internet Group, Inc. (NYSE:CRCL) published its second-quarter 2026 results on 5 August 2026. The issuer of the USDC stablecoin reported that USDC in circulation stood at $73.3 billion at quarter end, up 19% year on year, while total revenue and reserve income rose 7% to $701 million.

Business and sector

Circle issues USDC, a dollar-denominated stablecoin backed by reserve assets, and earns most of its revenue as income on those reserves. It also operates payments and infrastructure products, including the Circle Payments Network (CPN) for financial institutions and the Arc blockchain network. Stablecoin issuers operate in a sector shaped by interest rates, regulation and the pace at which banks, payment companies and developers adopt on-chain settlement.

Latest results

For the three months to 30 June 2026, reserve income was $668 million, up 5%, and other revenue was $34 million, up 41%. Total distribution, transaction and other costs were $412 million, up 1%, reflecting amounts paid to partners that distribute USDC. Net income from continuing operations was $48 million, an improvement of $530 million on the prior-year quarter, while adjusted EBITDA was $143 million, up 8%.

GAAP operating expenses were $254 million, down 56%, whereas adjusted operating expenses were $146 million, up 23%. The company's release explains the difference through adjustments.

Financial performance and industry context

On the operating side, USDC on-chain transaction volume reached $14.8 trillion, up 151%. CPN annualised volume, measured over the trailing 30 days, was $14.7 billion, up 76% from the previous quarter, and 175 financial institutions had enrolled, up 29%.

Circle also reported that it received final approval from the US Office of the Comptroller of the Currency to establish a national trust bank. It said Arc's public mainnet was scheduled to launch on 16 September 2026, with founding validators including BlackRock (NYSE:BLK), DTCC, Galaxy, Visa (NYSE:V), Mastercard (NYSE:MA) and Standard Chartered. Other partnership news included an expansion of BNY (NYSE:BK)'s role to cover USDC minting and redemption, and Standard Chartered's launch of integrated minting and redemption. Circle's Agent Stack, launched in May 2026, now lists more than 900 paid services, and the company said that 99.3% of x402 agent-payment volume settled in USDC.

Growth in circulation and in reserve income did not move in step, with revenue growing more slowly than USDC balances, a pattern that is consistent with the effect of reserve yields on income.

Risks and uncertainties

Reserve income depends heavily on prevailing short-term interest rates, so changes in monetary policy could affect revenue even if circulation grows. A large share of revenue is paid away to distribution partners. Regulation of stablecoins and trust banks continues to evolve, and competition from other issuers, banks and payment networks is increasing. The commercial importance of Arc and CPN is still developing, and several partnerships described in the release are announcements of intent rather than established revenue streams. Growth in on-chain transaction volume, although strong, does not translate directly into revenue, because reserve balances rather than transaction counts drive most income. Circle's costs also include the expense of building new products ahead of any sustained earnings from them, which affects profit quality.

Arc launch and the trust charter

The next quarterly report should show how the Arc mainnet launch has progressed, whether CPN volumes and institutional enrolment continue to expand, and how circulation and reserve income evolve. Progress under the new national trust charter and any changes in the regulatory framework for payment stablecoins will also be relevant.