Driven by USDC, Circle returns to profit in the second quarter

Circle generated $701 million in revenue in the second quarter of 2026. This 7% annual growth is mainly driven by the expansion of USDC. The stablecoin circulates more and processes many more transactions, even if falling rates gradually reduce the yield on reserves.

USDC remains Circle’s main financial engine

Circle’s business model still largely depends on assets that guarantee USDC parity. This dependence explains why the company is seeking to strengthen its regulatory status with its proposed fiduciary bank dedicated to USDC. In the second quarter, revenues from reserves reached $668 million, or more than 95% of the published total.

These revenues increased by 5% over one year. The increase mainly comes from a 25% increase in average USDC outstanding to $76.5 billion. At the end of the quarter, 73.3 billion USDC remained in circulation, an annual increase of 19%.

This growth was, however, slowed down by the fall in the yield on reserves. This fell to 3.5%, down 66 basis points. Circle therefore earns more thanks to the increase in the number of USDC in circulation, but each dollar placed in its reserves brings in less than a year ago.

At the same time, the crypto company is returning to profit. Net income from continuing operations reached $48 million, an annual improvement of $530 million. This jump mainly reflects the disappearance of a large part of the exceptional charges linked to the 2025 IPO. Adjusted EBITDA increased more modestly by 8%, to $143 million.

Crypto transactions are growing much faster than supply

The most spectacular figure does not come directly from income. Quarterly USDC trading volume jumped 151% to $14.8 trillion. Activity therefore increases much faster than the quantity of tokens in circulation.

This difference indicates that USDC moves 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 on the crypto market. It becomes a settlement, transfer and cash management tool.

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

During the quarter, Circle created 83 billion USDC and destroyed 87 billion following redemption requests. The number of wallets holding more than $10 increased by 24% to 7 million. Its share of the dollar-backed stablecoin market 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, Treasuries and other safe assets that make up reserves earn less. USDC growth must then offset this pressure to maintain revenues.

Circle is therefore trying to expand its model. Its revenues from subscriptions and services increased by 41%, but they still represent only $34 million. The group is also preparing 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 increased by 23% during the quarter.

The paradox remains clear. The stablecoin market is experiencing a sharp contraction, as their transactional use continues to accelerate. Circle benefits precisely 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 quarter’s $701 million proves the power of the current model. They also show why Circle needs to quickly build revenue that’s less interest rate sensitive.