Short answer: On August 5, 2026, USDC issuer Circle reported second-quarter results: on-chain USDC volume jumped 151% year on year to $14.8 trillion, but revenue and reserve income of $701 million missed analyst forecasts as interest yields on its reserves fell. Circle earnings show the core tension of the stablecoin business, where usage can boom while income depends on interest rates and on how much USDC is in circulation.
What happened
Circle Internet Group (NYSE: CRCL), the company behind the USDC stablecoin, published its results for the quarter to June 30 on Wednesday, August 5. Earnings per share of $0.18 beat the consensus of about $0.16, but total revenue came in roughly $40 million below the expected $742 million. Reuters reported that the shares fell as the revenue miss outweighed the profit beat.
| Metric, Q2 2026 | Value | Change year on year |
|---|---|---|
| Total revenue and reserve income | $701M | +7% |
| Reserve income | $668M | +5% |
| Other revenue | $34M | +41% |
| Net income, continuing operations | $48M | Up from a loss a year earlier |
| Adjusted EBITDA | $143M | +8% |
| USDC in circulation, June 30 | $73.3B | +19% |
| Average USDC in circulation | $76.5B | +25% |
| On-chain USDC transaction volume | $14.8T | +151% |
Why USDC volume grows faster than Circle's revenue
A stablecoin issuer does not earn fees on transfers. Circle makes almost all its money from interest on the cash and short-term U.S. Treasury bills that back each USDC. Two things set that income: how much USDC exists and what the reserves yield. Every transfer on-chain, however large, adds nothing directly.
- Lower yields. Circle's reserve return rate fell by 66 basis points, which offset much of the growth in balances.
- A shrinking quarter. Average circulation of $76.5 billion was above the $73.3 billion at quarter-end, so the USDC supply contracted during the period as the wider stablecoin market cooled.
- Costs of distribution. Distribution, transaction and other costs, largely payments to partners such as Coinbase that help place USDC, were $412 million, well over half of revenue.
That is why Circle is working to build income that does not depend on interest rates. Other revenue grew 41%, and management raised its 2026 guidance for it to $310–330 million from $150–170 million.
What Arc is and why Circle is betting on it
Arc is Circle's own layer-1 blockchain, designed for stablecoin payments, tokenized real-world assets and programmable finance. Circle set its public mainnet launch for September 16, 2026, and named a validator group that includes BlackRock, the Depository Trust & Clearing Corporation (DTCC), Galaxy, Intercontinental Exchange (ICE), Mastercard, MoneyGram, Standard Chartered and Visa. It reports more than 100 ecosystem and institutional builders.
- Arc token presale: $242 million completed in the second quarter, with about $180 million expected to be recognised as revenue in 2026.
- Circle Payments Network: annualised volume reached $14.7 billion at quarter-end, up 76% on the previous quarter, and about $23 billion by July 31, with 175 financial institutions enrolled.
- Long-term target: chief financial officer Jeremy Fox-Geen kept a multi-year framework of about 40% annual growth in USDC circulation and ruled out a near-term dividend.
Chief executive Jeremy Allaire called Arc one of Circle's largest opportunities and pointed to a federal trust bank charter approval and to large financial institutions moving from pilots to wider USDC use.
What it means for you
For anyone holding or moving USDC, the quarter says more about the business than about the coin. The key points:
- USDC's backing is unaffected. A revenue miss hits CRCL shareholders, not the reserves behind each token, which are held in cash and short-term Treasuries.
- Holding USDC earns you nothing directly. The interest on reserves goes to the issuer and its partners; that is the business model this report measures.
- Usage is real. A 151% jump in on-chain volume means deeper liquidity and more routes for USDC across networks.
- Pick the network deliberately. USDC exists on many chains with very different fees; learn the basics in our explainer on what a stablecoin is.
If you keep a meaningful balance in stablecoins, spreading it across issuers such as USDC and USDT reduces dependence on a single company.
Key takeaways
- Circle reported $701 million in Q2 2026 revenue and reserve income, below the roughly $742 million expected, while EPS of $0.18 beat forecasts.
- On-chain USDC volume rose 151% to $14.8 trillion; circulation stood at $73.3 billion on June 30.
- Lower reserve yields and a dip in circulation held back interest income.
- Circle raised its 2026 other-revenue guidance and set the Arc mainnet launch for September 16.
To convert other coins into USDC on the network you need, see our guide on converting altcoins to stablecoins.
Sources: Circle, The Globe and Mail, Reuters via MSN
Frequently asked questions
How much USDC is in circulation?
Circle reported $73.3 billion of USDC in circulation on June 30, 2026, up 19% from a year earlier. Average circulation during the second quarter was $76.5 billion.
How does Circle make money from USDC?
Mostly from interest on the cash and short-term U.S. Treasuries backing USDC. In Q2 2026, reserve income was $668 million of Circle's $701 million total, so its revenue depends heavily on interest rates and circulation.
When does Circle's Arc blockchain launch?
Circle set the public mainnet launch of Arc, its layer-1 blockchain for stablecoin payments and tokenized assets, for September 16, 2026.
