Circle Posts $701 Million Q2 Revenue as USDC Activity Accelerates
Circle Internet Group reported stronger second-quarter earnings as USDC adoption accelerated, returning to profitability despite lower interest income. The stablecoin issuer also announced a September launch date for Arc, its institutional blockchain network.
Circle posted $701 million in revenue and reserve income for Q2, up 7% year-over-year. Reserve income rose 5% to $668 million, supported by a 25% increase in average USDC circulation, though a 66-basis-point decline in the reserve return rate to 3.5% partially offset gains. Net income from continuing operations reached $48 million, an improvement of $530 million from the prior year, which was affected by stock-based compensation tied to Circle’s 2025 initial public offering. Adjusted EBITDA increased 8% to $143 million.
USDC circulation stood at $73.3 billion at quarter-end, up 19% year-over-year. Onchain transaction volume jumped 151% to $14.8 trillion, indicating each dollar of supply is moving more frequently. Circle minted $83 billion of USDC and redeemed $87 billion during the quarter. The number of wallets holding more than $10 rose 24% to 7 million. While USDC’s share of the fiat-backed stablecoin market dipped 66 basis points to 27%, the amount held directly on Circle’s platform more than doubled to $12.4 billion.
Circle Payments Network expanded as well, with annualized transaction volume reaching $14.7 billion at quarter-end, up 76% from the previous period. The network enrolled 175 financial institutions.
CEO Jeremy Allaire noted that near-term activity reflects a slower crypto market but highlighted the company’s platform progress: “We have built the platform for the internet financial system. We’re only beginning to see what it unlocks.”
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 involved, with validators including Blackrock, BNY, Mastercard, Visa, Standard Chartered, Galaxy, DTCC, and Intercontinental Exchange. Blackrock is expected to deploy its BUIDL tokenized Treasury fund on Arc, and DTCC is exploring tokenization of assets held by its Depository Trust Company subsidiary.
In regulatory developments, Circle received final approval from the Office of the Comptroller of the Currency to establish Circle National Trust, a federally regulated national trust bank. New York regulators also approved a limited-purpose trust company. Circle is extending USDC into machine payments through its Agent Stack, which is now used by over 900 paid services, with 99.3% of agent-payment volume settled in USDC.
Circle’s quarter reflects a business still influenced by 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 faces the challenge of turning stablecoin scale into a broader, durable financial platform.