Circle Q2 2026 results show 19% USDC growth, $701M revenue

Circle, the issuer of the USD Coin (USDC) stablecoin, reported strong growth in its core metrics for the second quarter of 2026, though its financial performance was tempered by lower interest rates. The company announced its quarterly results on August 5, 2026.

USDC circulation reached $73.3 billion at the end of the quarter, a 19% increase from the same period last year. On-chain transaction volume for the stablecoin surged 151% year-over-year to $14.8 trillion, indicating its expanding use for payments, trading, and settlements. Despite this operational growth, Circle's total revenue and reserve income rose a more modest 7% to $701 million, falling short of some analyst expectations.

The divergence highlights a central challenge for the company's business model. While adoption accelerates, a significant portion of its revenue is derived from interest earned on the reserves backing USDC. The company reported that average USDC circulation increased by 25%, but the average reserve return rate declined by 66 basis points to 3.5%. This dynamic limited reserve income growth to 5% for the quarter, with reserve income totaling $668 million and constituting roughly 95% of the combined...