Driven by USDC, Circle Returns to Profit in Q2

Circle generated $701 million in revenue in the second quarter of 2026. This annual growth of 7% is primarily driven by the expansion of USDC. The stablecoin is circulating more and processing significantly more transactions, even though declining rates are gradually reducing the yield on reserves.

In brief

• Circle generates $701 million in revenue in Q2 2026.
• The transaction volume in USDC surged by 151% to $14.8 trillion.
• The decline in reserve yields remains the main risk for the group.

USDC remains the main financial driver for Circle.

Circle's business model still largely depends on the assets that back the parity of USDC. This dependence explains why the company is seeking to strengthen its regulatory status with its project for a trust bank dedicated to USDC. In the second quarter, revenue from reserves reached $668 million, accounting for over 95% of the total reported.

These revenues grew by 5% year-on-year. The increase mainly comes from a 25% rise in the average outstanding USDC, which reached $76.5 billion. At the end of the quarter, $73.3 billion of USDC remained in circulation, marking an annual growth of 19%.

However, this growth has been hindered by the decline in reserve yields. It fell to 3.5%, down 66 basis points. Circle is therefore earning more due to the increase in the number of USDC in circulation, but each dollar placed in its reserves yields less than a year ago.

The crypto company is also returning to profitability. The net income from continuing operations reached $48 million, representing an annual improvement of $530 million. This jump mainly reflects the disappearance of a large portion of exceptional charges related to the IPO in 2025. Adjusted EBITDA modestly increased by 8% to $143 million.

Crypto transactions are growing much faster than supply.

The most spectacular figure does not come directly from revenue. The quarterly transaction volume in USDC soared by 151% to $14.8 trillion. Activity is therefore increasing much faster than the amount of tokens in circulation.

This difference indicates that USDC is moving more quickly between wallets, platforms, DeFi applications, and payment infrastructures. The stablecoin is no longer just used to temporarily hold funds while waiting for a new opportunity in the crypto market. It is becoming a tool for settlement, transfer, and cash management.

The integration of USDC by Standard Chartered illustrates this institutional evolution. Companies can use the stablecoin to move liquidity across blockchains while maintaining traditional banking procedures. Circle thus benefits from new distribution channels without having to build each gateway to traditional finance on its own.

During the quarter, Circle created $83 billion in USDC and destroyed $87 billion following redemption requests. The number of wallets holding more than $10 increased by 24% to 7 million. Its market share of dollar-backed stablecoins remains close to 27%, despite a slight decline of 66 basis points.

Circle must now reduce its dependence on rates.

The results show a stronger company, but still exposed to central bank decisions. When rates fall, Treasury bonds and other safe assets that make up the reserves yield less. The growth of USDC must then compensate for this pressure to maintain revenues.

Circle is therefore trying to broaden its model. Its revenues from subscriptions and services increased by 41%, but they still only represent $34 million. The group is also preparing for the public launch of Arc, its blockchain intended for programmable payments, tokenized assets, and institutional uses.

This diversification could transform Circle into a complete financial infrastructure rather than just a stablecoin issuer. However, it requires significant investments in products, artificial intelligence, and security. Adjusted operating expenses thus increased by 23% during the quarter.

The paradox remains clear. The stablecoin market is undergoing a strong contraction, while their transactional use continues to accelerate. Circle is precisely benefiting from this shift. Its future will depend less on the number of USDC held passively than on their actual circulation in the crypto economy. The $701 million from the quarter proves the strength of the current model. It also shows why Circle must quickly build revenues that are less sensitive to interest rates.