Circle beats profit estimates as USDC circulation grows and Arc nears launch
The stablecoin issuer reported stronger adjusted earnings, $14.8 trillion in quarterly onchain transaction volume and a Sept. 16 public-mainnet date for its payments-focused blockchain.
Circle's second-quarter results gave investors two different signals: profit was better than expected, while revenue and reserve income came in slightly below the forecast. Adjusted earnings were 18 cents a share, ahead of the 16-cent estimate, and adjusted EBITDA rose 8% to $143 million.
Revenue and reserve income increased 7% from a year earlier to $701 million, compared with a $712 million estimate. Net income from continuing operations was $48 million, above the $43 million forecast, according to the company's investor-relations materials.
USDC is growing, but rates still matter
USDC circulation reached $73.3 billion at the end of June, up 19% from a year earlier but below the 2026 peak near $80 billion. Onchain transaction volume increased 151% to $14.8 trillion. The figures show more activity flowing through the stablecoin while Circle remains exposed to the interest-rate environment because reserve income is a major part of its business.
Chief executive Jeremy Allaire said institutions using USDC are expanding rather than merely testing it. The commercial question is whether that activity produces durable payment and settlement revenue as rates change, not simply larger balances during a favorable market cycle.
Arc adds a second growth bet
Circle said Arc, its payments-focused blockchain, is scheduled to reach public mainnet on Sept. 16. More than 100 ecosystem and institutional builders are involved, with founding validators that include BlackRock, DTCC, ICE, Mastercard, Visa, Standard Chartered, Galaxy and MoneyGram.
Circle also reported that its Payments Network reached $14.7 billion in annualized volume over the latest 30-day period, up 76% from the previous quarter, with 175 financial institutions participating. Arc and the network are attempts to make stablecoin settlement more useful to institutions, but they will need to turn named participants into recurring volume.
