Circle’s USDC growth met lower reserve yield — and a token presale changed the quarter
Circle reported more USDC in circulation and onchain activity, but lower reserve yield cut reserve income while an ARC token presale lifted other revenue.
In brief
- Average USDC in circulation rose 8% year over year to $73.3 billion, while reserve income fell 8% to $658 million.
- Circle said its reserve return rate declined by 61 basis points to 3.5%, showing why a larger token base did not translate into higher reserve income.
- Other revenue reached $207 million, including $182 million from an ARC token presale, so the quarter’s headline growth was not solely a USDC operating result.
More USDC did not offset the yield decline
Circle’s 4 November earnings release gives a useful view of the economics behind a large dollar stablecoin. For the third quarter of 2026, the company reported average USDC in circulation of $73.3 billion, up 8% from a year earlier. It also reported $13.9 trillion of onchain USDC transaction volume, up 49%. Yet reserve income fell 8% to $658 million because the reported reserve return rate declined by 61 basis points to 3.5%. The mechanism matters: reserve income depends both on the average amount backing tokens and on the yield earned by those assets. A larger circulation base can therefore coincide with lower reserve income when short-term rates or the portfolio’s effective return move down.
A network-token presale reshaped the revenue mix
Total revenue and reserve income rose 17% year over year to $865 million, but the composition was unusual. Circle reported $207 million of other revenue, up 627%, and attributed $182 million of that amount to an ARC token presale. The company also said adjusted EBITDA reached $317 million, a non-GAAP measure that benefited from the presale revenue and lower distribution costs. Readers comparing quarters should therefore separate recurring reserve economics from a token transaction tied to Circle’s Arc network. The disclosure says Arc’s public mainnet launched in September and that 10 billion ARC tokens were minted at genesis, with a planned transition toward proof of stake in 2027. Those roadmap statements are forward-looking, not completed operating results.
What the figures do and do not show
Circle’s release contains company-reported, unaudited quarterly figures and reconciliations for its non-GAAP measures. Onchain transaction volume measures value transferred across public networks; it is not the same as retail spending, unique users or company revenue. Likewise, end-of-period USDC circulation was $73.9 billion while the average was $73.3 billion, and the average is the more relevant denominator for understanding quarterly reserve income. The result is evidence that stablecoin scale and issuer revenue can move differently as rates and revenue mix change. It is not a forecast for USDC demand, the ARC token, or Circle’s share price.
Sources and verification
Based on an official announcement
Checked Circle’s dated earnings release and its definitions for quarterly metrics and non-GAAP measures. All performance claims are attributed to Circle; onchain volume is not treated as unique users or retail payment volume.
- Circle Reports Third Quarter 2026 Results Circle · Primary document · 4 Nov 2026
Prepared with AI assistance from the linked sources. This is not a claim of independent field reporting or human review. How we publish · Report a correction
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