Stablecoin issuer Circle reported $865 million in revenue and reserve income for the third quarter of 2026, an increase of 17% year-over-year, as average USDC circulation reached $73.3 billion. Net income rose 5% to $226 million and adjusted EBITDA climbed 85% to $317 million, according to the company's official results announcement.

The quarter also included a workforce reduction of approximately 5%, the public mainnet launch of Circle's Arc blockchain, and a definitive agreement to acquire Singapore-based payments provider Tazapay, alongside expanded USDC payment integrations with partners including Samsung Wallet and Visa Direct.

Circle Earnings Reflect Mixed Revenue Sources

Reserve income — Circle's largest revenue line, earned on the reserves backing USDC — declined 8% year-over-year to $658 million as the company's reserve return rate fell 61 basis points. Because this line tracks the return paid on USDC reserves, a large share of Circle's revenue moves with interest-rate levels rather than transaction activity; growth in average USDC circulation partially offset the decline.

Other revenue surged 627% to $207 million, including $182 million generated from the ARC token presale, meaning the presale alone accounted for the majority of that category's total in the quarter.

USDC onchain transaction volume reached $13.9 trillion, up 49% year-over-year. Distribution, transaction and other costs fell 8% to $412 million, while operating expenses increased 16% to $245 million and adjusted operating expenses rose 13% to $139 million.

Net income from continuing operations grew 5% to $226 million. Adjusted EBITDA climbed 85% to $317 million, reflecting ARC presale revenue and lower distribution costs.

The company reduced its workforce by approximately 5% during the quarter and recorded $9.15 million in restructuring charges, primarily covering severance, notice-period compensation and employee benefits.

Arc Mainnet Launch and Tazapay Acquisition Expand Operations

Circle launched the Arc public mainnet on September 16 with 11 founding validators and more than 100 institutional and ecosystem builders, a step that extends the stablecoin issuer into operating its own blockchain network alongside its USDC issuance business. The company completed the genesis mint of 10 billion ARC tokens.

Its developer community now includes 75,000 Arc House members, 10,000 Architect ambassadors and more than 1,200 projects.

Circle also signed a definitive agreement to acquire Tazapay, with closing expected in 2027 pending regulatory approval. Tazapay processes more than $25 billion in annualized payment volume, works with over 60 banking and fintech partners, and supports local payouts across more than 100 markets; if the deal closes as expected, that footprint would sit alongside Circle's own payments operations. Stablecoins account for roughly 60% of its transaction volume.

Payments Partnerships and USDC Activity Grow

Circle said annualized transaction volume on its Circle Payments Network (CPN) reached $41.3 billion, representing year-over-year growth of 15.2 times, with 205 financial institutions enrolled on the network.

Among the partnerships announced during the quarter, Binance committed a $100 million equity investment in Circle, and Chelsea FC began displaying Circle and USDC branding on its team shirts for the 2026/27 season.

Samsung Wallet enabled eligible U.S. users to send USDC to bank accounts in more than 60 countries, while Visa Direct moved USDC prefunding into commercial deployment across more than 180 countries — placements that put USDC inside consumer wallet and card-network payment flows.

Circle additionally announced USDC and EURC integrations with SAP-backed Tereina, alongside partnerships with Allaria and Volante Technologies. The regulatory review ahead of Tazapay's expected 2027 closing, CPN's enrolled-institution count, and Arc's project and developer numbers give readers concrete markers for tracking Circle's expansion beyond its rate-sensitive reserve income in the quarters ahead.