Circle reported higher first-quarter revenue and reserve income as $USDC activity surged across its network. Total revenue and reserve income reached $694 million, up 20% year over year, while $USDC onchain transaction volume rose 263% to $21.5 trillion.
Key Takeaways:
- Circle revenue rose 20% as $USDC transaction volume jumped 263% year over year.
- Reserve income reached $653 million, supported by higher average $USDC circulation.
- Arc-related activity, AI tools, and payments integrations could shape future revenue streams.
$USDC Growth Drives Circle Revenue and Reserve Income
Circle Internet Group Inc. (NYSE: CRCL) announced on May 11 its first-quarter 2026 results, led by higher revenue and a sharp rise in $USDC activity. Total revenue and reserve income reached $694 million, up 20% year over year. $USDC onchain transaction volume jumped 263% year over year to $21.5 trillion, while $USDC in circulation rose 28% to $77 billion at quarter end.
Quarterly performance reflected growth across Circle’s reserve income, network activity, and payments infrastructure. Reserve income totaled $653 million, supported by higher average $USDC circulation. Other revenue reached $42 million, driven by subscription, services, and transaction activity. Total revenue and reserve income rose 20% from a year earlier, but declined from $770 million in Q4 2025 to $694 million in Q1 2026. Adjusted EBITDA increased 24% to $151 million.
Circle explained that $USDC onchain transaction volume includes native and canonically bridged $USDC processed across supported blockchains, excluding Solana. The company stated:
“$USDC in circulation of $77.0 billion at quarter end grew 28%; $USDC onchain transaction volume in Q1’26 of $21.5 trillion grew 263%.”
Product activity during the quarter extended beyond core $USDC metrics. Circle completed a $222 million ARC Token presale at a $3 billion fully diluted network valuation. Investors in the consortium included a16z crypto, Apollo Funds, Blackrock, and ARK Invest. The company also advanced products tied to AI-driven financial infrastructure.
Stablecoin Payments and AI Tools Support Circle Expansion
April rollouts included Circle CLI, Agent Wallets, and an Agent Marketplace for AI-powered transactions using $USDC across blockchain and payment systems. Managed Payments also launched for financial institutions seeking stablecoin settlement tools without directly managing digital assets.
Commercial integrations added another layer to Circle’s first-quarter activity. Kyriba integrated $USDC capabilities into treasury systems built for continuous liquidity management. Polymarket continued using $USDC as its primary collateral and settlement asset. Circle also said $USDC represented 63% of stablecoin transaction volume during the quarter based on Visa Onchain Analytics data.
Market-making repricing activity on Aerodrome accounted for roughly $9 trillion of the $9.6 trillion quarter-over-quarter increase in $USDC onchain transaction volume, Circle said. CEO Jeremy Allaire stated:
“Circle’s first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack.”
