Circle Reports Strong Q2 2026 USDC Volume Growth, Revenue Driven by Reserve Interest

Circle Internet Group announced significant financial results for the second quarter of 2026, reporting that USDC on-chain transaction volume surged to $14.8 trillion, a 151% increase year-over-year. The company’s total revenue for the quarter reached $701.3 million, marking a 7% rise from the previous year, with the majority stemming from interest income generated on reserves backing the stablecoin.

USDC transaction activity saw substantial growth, with daily on-chain volume averaging $163 billion during the quarter. As of June 30, 2026, USDC in circulation stood at $73.3 billion, an increase of 19% compared to the same period in 2025. Circle estimates that USDC has processed approximately $32 trillion in adjusted transfers through August 2026, indicating a significant role in the stablecoin transfer market.

Circle’s revenue model remains heavily reliant on interest income. In Q2 2026, roughly 95% of its total revenue, equating to approximately $667.7 million, was derived from interest earned on reserves held in US Treasuries and cash equivalents. The company reported a net income of $48 million and an adjusted EBITDA of $143 million, an 8% increase year-over-year. Reserve income yields were approximately 3.5%.

In contrast, transaction revenue contributed a smaller portion, amounting to about $5.3 million for the quarter. This underscores Circle’s current primary profit driver: the management of its reserves, a model inherently sensitive to interest rate fluctuations. While yields were lower, Circle’s results noted that increased average circulation helped offset this, maintaining reserve income levels.

The Circle Payments Network also demonstrated notable expansion, achieving an annualized volume of $14.7 billion across 175 institutions. This network experienced a significant quarter-over-quarter growth of 76%, suggesting increasing adoption and potential for future revenue diversification beyond interest income.

Founded in 2013, Circle has established USDC as a core tool in decentralized finance (DeFi) and institutional payments. Recent regulatory progress, including approvals tied to Circle National Trust and New York Trust, has reportedly bolstered its standing with traditional financial players. The growth of the Circle Payments Network is being closely watched as a key indicator of whether transaction volume can evolve into a more substantial revenue stream for the company.

Why This Matters

The materials describe a narrow update: Circle announced that over $14 trillion has moved through stablecoins in the past year, with USDC driving this growth. The exact share of stablecoin transfer volume held by USDC in 2026 is an estimation.

Broader Context

Source materials place the factual news in this context: Circle says more than $14 trillion has moved through stablecoins over the past year, a growth rate of 151%. The company’s own USDC numbers are the main driver of that figure.