TLDR
- Circle reported $694M in Q1 revenue and reserve income, up 20% year over year.
- USDC circulation reached $77B, rising 28% from the same quarter last year.
- USDC onchain transaction volume surged 263% year over year to $21.5T.
- Circle raised $222M for Arc at a $3B fully diluted valuation.
- Arc’s token presale was led by a16z crypto with several major investors joining.
Circle reported higher first-quarter revenue as USDC circulation reached $77 billion. The stablecoin issuer said revenue and reserve income rose 20% year over year to $694 million. It also announced a $222 million Arc token presale at a $3 billion fully diluted valuation, as it expands blockchain infrastructure for institutions and digital payments.
Circle Reports Higher Revenue and Reserve Income
Circle said first-quarter 2026 revenue and reserve income reached $694 million. The figure marked a 20% increase from the same period last year. The company linked the growth to wider USDC use and continued demand for digital dollar infrastructure. USDC circulation reached $77 billion during the quarter. That was up 28% year over year.
The increase showed that more users, firms, and platforms continued to use the stablecoin for payments, trading, and settlement. Circle said USDC onchain transaction volume rose 263% year over year to $21.5 trillion. The growth in volume was much faster than revenue growth.
This showed that USDC moved through blockchain networks at a higher pace during the quarter. The company stated, “The Internet’s largest paradigm shift is happening now, and our Q1 results underscore Circle’s role at the center of these changes.” Circle also said it is building infrastructure for a programmable internet financial system.
Arc Token Presale Draws Institutional Backing
Circle also announced a $222 million ARC token presale. The sale valued Arc at a $3 billion fully diluted valuation. The round was led by a16z crypto, with participation from BlackRock, Apollo, ICE, SBI Group, and other investors. Arc is planned as institutional blockchain infrastructure. Circle said the network will support financial activity, digital payments, and AI-native economic activity.
The company has positioned Arc as part of its broader plan to support regulated stablecoin use. The raise comes as stablecoin firms seek more revenue streams beyond reserve income. Circle earns much of its revenue from income linked to reserves backing USDC. That model can face pressure when interest rates fall.
The difference between transaction growth and revenue growth remained clear in the quarter. USDC volume rose 263%, while revenue and reserve income rose 20%. This showed that Circle still earns more from the stock of USDC than from payment flow.
USDC Growth Points to Wider Stablecoin Use
USDC velocity rose as transaction volume expanded faster than circulation. The data showed that each dollar of USDC was used more often across blockchain networks. Circle’s challenge is to turn more network activity into direct revenue over time. Possible revenue sources include transaction fees, Circle Payments Network economics, Arc gas fees, and sequencing revenue.
These streams may develop as institutions use stablecoins for settlement and payments. Circle has not said that these revenues will replace reserve income soon. Regulation also remains important for the company’s model. Circle has supported clear rules for stablecoins and blockchain-based payments.
The company said regulatory changes could support activity-based incentives and reduce uncertainty for stablecoin operators. Circle’s first-quarter results showed growth across revenue, USDC circulation, and onchain volume. The figures also showed the gap between use and direct transaction monetization. As USDC activity grows, Circle’s next test will be converting payment flow into steady revenue.
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