Overview
- Circle reported quarterly results on Wednesday showing total revenue and reserve income of about $701 million for Q2 2026 and adjusted earnings of $0.18 per share, beating profit estimates but missing some revenue expectations.
- The yield on assets backing USDC fell to roughly 3.5%, which limited reserve income to about $668 million and reduced the growth benefit from a 25% rise in average USDC balances.
- USDC circulation reached $73.3 billion at quarter end, up 19% year over year, while on‑chain transaction volume surged to $14.8 trillion, a 151% increase that signals much higher token velocity.
- Management confirmed the Coinbase collaboration automatically renewed through 2029, rejected plans for quarterly dividends, and raised full‑year other‑revenue guidance to $310–$330 million largely because of Arc token presale proceeds.
- Circle is preparing for Arc’s public mainnet on September 16, 2026, and has reported $222–$242 million of presale proceeds and founding validators from major financial firms, making Arc’s successful launch and subsequent fee generation a key test of Circle’s push to diversify beyond reserve income.