Circle (CRCL) shares fell 0.41% to close at $62.99 even as the company reported strong second-quarter results driven by USDC growth and institutional adoption. The stablecoin issuer posted higher revenue, increased network activity, and further progress on its blockchain infrastructure initiatives. Early gains in the session faded during morning trading before the stock stabilized in the afternoon, highlighting that investors were still weighing the company’s operating progress against the fact that its revenue remains tied in part to reserve income and broader rate conditions.

Stablecoin Expansion Supports Q2 Results

Circle reported $701 million in combined revenue and reserve income for the second quarter, up 7% from the same period a year earlier. Reserve income totaled $668 million, supported by a 25% year-over-year increase in average USDC circulation. Declining reserve return rates, however, limited what would otherwise have been stronger income growth.

At the end of the quarter, USDC circulation reached $73.3 billion, up 19% year over year. Onchain transaction volume rose 151% to $14.8 trillion across all supported blockchain networks. Circle’s meaningful wallet count reached seven million, a 24% increase from a year earlier.

The company reported net income from continuing operations of $48 million, reversing a loss in the year-ago quarter. Circle said the improvement was driven in part by lower stock-based compensation expenses following its 2025 public market debut. Adjusted EBITDA increased 8% to $143 million, helped by higher reserve income tied to expanding USDC circulation.

Arc Mainnet Set for September 16

Circle said Arc’s public mainnet is scheduled to launch on September 16. The network includes privacy features and programmable finance infrastructure intended to support tokenized real-world assets and agent-driven payment applications. More than 100 institutional participants and ecosystem developers are currently building on the network.

The founding validator group for Arc includes BlackRock, DTCC, Galaxy, Mastercard, Visa, ICE, and Standard Chartered. Circle said these institutions will contribute to network security while also helping develop settlement infrastructure and digital asset solutions. BlackRock has said it plans to deploy its BUIDL tokenized liquidity fund natively on Arc.

DTCC is working to enable tokenized asset support through its securities custody platform. BNY, Standard Chartered, and other financial institutions are also exploring use cases including custody, settlement, and stablecoin integration. For Circle, that mix of bank, market infrastructure, and asset-management interest underscores how its products are moving from crypto-native usage into areas of mainstream finance where settlement speed, interoperability, and compliance remain key considerations.

Payments and Regulatory Approvals Add Momentum

Circle expanded USDC availability through new partnerships with BNY, JCB, Nium, Grupo Bind, and Standard Chartered. The collaborations are focused on custody solutions, cross-border payments, local currency conversion, and institutional stablecoin services. Kakao Group has also begun evaluating USDC payment infrastructure for possible deployment in South Korea.

Circle Payments Network reached $14.7 billion in annualized transaction volume by the end of the quarter, up 76% sequentially from the prior quarter. The number of participating institutions increased 29% to 175. Circle also said USDC settled 99.3% of x402 transaction volume for agent payments.

On the regulatory side, Circle received approval for Circle National Trust, giving the company a national trust bank charter from federal regulators. New York regulators also approved Circle New York Trust as a limited-purpose digital asset company. Circle said the two approvals create a foundation for expanded custody operations and the potential future management of USDC reserve assets, adding a clearer regulatory footing as more financial institutions test stablecoin-based payment and settlement tools.