Stablecoin issuer Circle generated approximately $1.4 billion in revenue during the first half of 2026, retaining just $103 million as net profit after allocating 93% of earnings to distribution, operations, and network investment.
Of each revenue dollar, Circle spent 59 cents on distribution to partners and transaction costs, while another 34 cents covered operating expenses and network investment, leaving seven cents as net profit. The figures were released October 16 by Chief Commercial Officer Kash Razzaghi.
Record Transaction Volume and Market Share
USDC processed more than $36 trillion in on-chain transaction volume in the first half of 2026, accounting for approximately 77% of global stablecoin transaction volume, up from 60% a year earlier. The company reported more than $315 billion in combined issuance and redemptions over the six-month period, averaging $1.7 billion daily.
Second-quarter minting and redemptions totaled $170 billion, up 105% from the same period in 2025.
Distribution Partners Drive Revenue Sharing
Circle earns most of its revenue from assets backing USDC, which include cash and U.S. government securities. The $819 million distribution expense reflects payments to exchanges, wallets, and payment companies that attract users and maintain USDC balances.
Coinbase remains Circle's largest distribution partner, with average USDC holdings across the exchange's products reaching a record $20 billion in the second quarter, up 44% from a year earlier. Binance signed a five-year commercial agreement in September and invested $100 million in Circle, while more than 150 other partners hold economic interests in USDC's growth.
Infrastructure and Liquidity Costs
Circle maintains substantial banking infrastructure to support transaction activity, including cash reserves at banking partners for customer redemptions. The company now offers eligible customers free, near-real-time redemptions through the Circle Payments Network and its platform products, allowing participating businesses to convert USDC into dollars around the clock.
Circle highlighted more than 55 licenses and regulatory registrations, relationships with over 25 banking partners, and native USDC deployments across more than 35 blockchains. The company's reserves are held in a government money market fund managed by BlackRock and custodied at BNY Mellon, with compliance operations covering 185 countries.
Competitive Pressure
Circle's disclosure directly challenges newer stablecoin providers claiming established issuers retain excessive reserve income and charge high redemption fees. The company argues that the revenue it retains funds the banking access, liquidity systems, and compliance infrastructure required to operate USDC across international markets.
Competing stablecoin issuers are increasingly offering distributors greater participation in reserve earnings, creating commercial pressure on Circle's existing arrangement.
