Circle reported a strong second quarter in 2026, generating $701 million in combined reserve income and other revenue — a 7% year-over-year increase — even as USDC redemptions outpaced mints by roughly $4 billion. The August 5 earnings release detailed gross redemptions of $87 billion against $83 billion in mints, though USDC circulation still ended the quarter at $73.3 billion, up 19% from a year earlier.
Reserve income rose 5% to $667.7 million, supported by a larger average balance, while the reserve return rate fell 66 basis points to 3.5% amid a steady Federal Reserve target range. On‑chain USDC transfer volume surged 151% year‑over‑year to $14.8 trillion, and the Circle Payments Network’s annualized volume hit $14.7 billion.
The biggest surprise came from the “other revenue” outlook: Circle doubled its full‑year 2026 guidance from a midpoint of $160 million to $320 million, incorporating revenue from the ongoing ARC token presale. The presale’s two closings have generated about $242 million in estimated gross proceeds, although recognized revenue may differ. Other revenue itself climbed 41% to $33.6 million in Q2.
Circle also confirmed that the Arc public mainnet will launch on September 16 with a roster of founding validators including BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. Additionally, the Office of the Comptroller of the Currency granted Circle a federal trust bank charter for Circle National Trust, reinforcing its regulatory standing.
