Circle Reports 17% Revenue Growth as USDC Transaction Volume Reaches $13.9 Trillion

Circle Internet Group, the company behind the USDC stablecoin, reported $865 million in revenue and reserve income for the third quarter of 2026, marking a 17% increase from the same period last year. The results were supported by growing USDC transaction activity, the launch of its Arc blockchain, and a $182 million contribution from the private presale of its ARC token.

USDC transaction volume increased 49% year over year to $13.9 trillion, while average USDC circulation rose 8% to $73.3 billion. Net income from continuing operations reached $226 million, up 5% from the previous year. Adjusted EBITDA climbed 85% to $317 million. 

However, the revenue growth came with an important distinction. Circle's reserve income declined 8% to $658 million, primarily because its reserve return rate fell by 61 basis points to 3.5%. The ARC token presale contributed $182 million to other revenue, helping lift the overall result.

ARC token presale boosts Circle's revenue

Circle generated $207 million in other revenue during the quarter, compared with $29 million in Q3 2025. The increase was largely driven by the ARC token presale, which accounted for $182 million.

Without this contribution, Circle's total revenue and reserve income would have been approximately $683 million, rather than $865 million. This means the reported 17% growth reflects both its established USDC business and revenue from a new blockchain-related activity. 

The company also reported $412 million in distribution, transaction, and other costs, down 8% year over year. These costs include payments to partners involved in distributing USDC.

Circle's results highlight the importance of distribution partnerships to its stablecoin business. Its five-year agreement with Binance, which includes a $100 million equity investment in Circle, is one example of how the company is expanding USDC access across global markets.

Altcoin Buzz previously examined the financial implications of Circle's five-year Binance agreement, including how distribution costs affect the revenue Circle retains from USDC.

Arc mainnet and new partnerships expand Circle's reach

Circle's third-quarter performance also included several major business developments.

The company launched the public mainnet of Arc on September 16. The Layer 1 blockchain is designed for financial applications, payments, and onchain settlement, with native USDC integration. It launched with more than 100 institutional and ecosystem builders and a founding group of institutional validators. 

Circle also highlighted several partnerships and integrations:

• Binance: The exchange announced a $100 million equity investment in Circle alongside a renewed five-year partnership to expand USDC distribution.
• Chelsea FC: Circle became a principal partner, with USDC branding appearing on the club's men's, women's, and academy shirts for the 2026/27 season.
• Samsung Wallet: Eligible Galaxy users in the United States can send USDC to qualifying bank accounts in more than 60 countries, with recipients receiving funds in local currencies.
• Visa Direct: Stablecoin prefunding moved from pilot projects into commercial deployment, allowing eligible clients to fund cross-border payouts using USDC across more than 180 countries.

These developments show that Circle is expanding beyond issuing a dollar-pegged stablecoin. It is building payment infrastructure and blockchain services intended to connect businesses, financial institutions, and consumers.

The company also signed a definitive agreement to acquire Tazapay, a Singapore-based cross-border payments platform. The acquisition is expected to close in 2027, subject to regulatory approvals. 

Circle cuts 5% of its workforce despite revenue growth

Alongside its strong financial results, Circle disclosed a workforce reduction of approximately 5%. The company recorded $9.1 million in restructuring costs during the quarter.

Circle said the move was intended to better align its organizational structure with its operating model. The reduction came as the company continued investing in new products, infrastructure, and its expanding payments business. 

The restructuring also comes as operating expenses increased 16% year over year to $245 million. Higher general and administrative expenses, depreciation and amortization, IT infrastructure, and marketing costs contributed to the increase. 

Circle maintains its full-year guidance

Circle maintained its full-year 2026 guidance despite changes in the regulatory environment and the upcoming implementation of the GENIUS Act.

The company continues to expect:

• Other revenue: $310 million to $330 million for 2026, including recognized ARC token presale revenue.
• Revenue less distribution costs margin: 41.7% to 43.7%.
• Adjusted operating expenses: $570 million to $585 million.
• USDC circulation: A multi-year growth target of 40% compound annual growth through the cycle. 

The GENIUS Act is expected to reshape the US payment stablecoin market by establishing a federal framework for permitted issuers and reserve requirements. Circle has identified the legislation as an important regulatory development, although its full impact on the stablecoin business remains uncertain. 

Circle's results come as stablecoins become increasingly important to institutional payments and tokenized financial markets. Altcoin Buzz previously explored who benefits financially from the growth of tokenization, including Circle's role in the expanding market.

USDC has also gained regulatory recognition in Europe. The European Banking Authority recently classified it as the EU's first significant e-money token under MiCA, adding another milestone to Circle's regulatory expansion. 

Circle's third-quarter results demonstrate growing demand for USDC and progress in its broader infrastructure strategy. However, the decline in reserve income shows that transaction growth alone does not guarantee higher profitability. The company's ability to expand USDC adoption, manage distribution costs, and turn Arc into a widely used financial network will be important to its performance in the coming quarters.