Circle Posts $701 Million Q2 Revenue as USDC Activity Accelerates

USDC Volume Jumps 151% to $14.8T as Circle Returns to Profit

Circle Internet Group returned to profit in the second quarter as greater USDC adoption offset weaker returns on the reserves backing the stablecoin.

The company reported $701 million in revenue and reserve income, up 7% from a year earlier. Reserve income rose 5% to $668 million, supported by a 25% increase in average USDC circulation. That gain was partly offset by a 66-basis-point decline in the reserve return rate to 3.5%.

Net income from continuing operations reached $48 million, an improvement of $530 million from the prior year. Circle said the comparison reflected heavy stock-based compensation tied to its 2025 initial public offering. Adjusted earnings before interest, taxes, depreciation, and amortization increased 8% to $143 million.

USDC Volume Outpaces Supply Growth

USDC circulation stood at $73.3 billion at quarter-end, 19% higher than a year earlier. Onchain transaction volume climbed 151% to $14.8 trillion, showing that each dollar of supply is moving more frequently.

Circle minted $83 billion of USDC during the quarter and redeemed $87 billion. The number of wallets holding more than $10 rose 24% to 7 million. USDC held a 27% share of the fiat-backed stablecoin market, down 66 basis points. However, the amount held directly on Circle’s platform more than doubled to $12.4 billion.

Circle Payments Network also expanded. Its annualized transaction volume reached $14.7 billion at the end of the quarter, up 76% from the previous period. The network had enrolled 175 financial institutions.

“Our quarterly financial results reflect the current rate environment and a crypto market that has slowed. But near-term activity tells a different story. We have built the platform for the internet financial system. We’re only beginning to see what it unlocks,” CEO Jeremy Allaire said.

Arc Mainnet Set for September

Circle plans to launch Arc’s public mainnet on Sept. 16. The blockchain will include privacy tools, infrastructure for AI agents and support for tokenized real-world assets.

More than 100 institutions and developers are already involved. Arc’s validator group includes Blackrock, BNY, Mastercard, Visa, Standard Chartered, Galaxy, DTCC, and Intercontinental Exchange.

Blackrock is expected to deploy its BUIDL tokenized Treasury fund on Arc. DTCC is also exploring the tokenization of assets held by its Depository Trust Company subsidiary.

Circle separately received final approval from the Office of the Comptroller of the Currency to establish Circle National Trust. New York regulators also approved a limited-purpose trust company. Circle is also extending USDC into machine payments, as its Agent Stack is now in use by more than 900 paid services, with 99.3% of agent-payment volume settled in USDC.

Circle’s quarter shows a business still exposed to interest rates, but increasingly supported by transaction growth, institutional adoption and new network infrastructure. With Arc approaching launch and USDC activity rising faster than supply, the company’s next test is whether it can turn stablecoin scale into a broader, more durable financial platform.