Overview
- Circle, which disclosed results on Aug. 5, reported Q2 USDC on-chain transaction volume of $14.8 trillion, a 151% year-over-year increase, and USDC circulation of $73.3 billion, up 19% from a year earlier.
- The company recorded $701.3 million in total revenue and reserve income for Q2 and adjusted EPS of $0.18, but reserve return rates fell to 3.5%, which limited reserve income growth to about 5%.
- Circle pays large distribution and transaction costs that materially reduce retained income; Coinbase held roughly 30% of USDC at quarter end and the firms’ collaboration automatically renewed on existing terms through 2029.
- Management said it will not start quarterly dividends and will retain capital to fund products, infrastructure and strategic opportunities, a move aimed at offsetting pressure from lower reserve yields.
- Circle plans to launch the Arc public mainnet on Sept. 16 with more than 100 institutional and ecosystem builders and expects Arc, subscriptions and services to be key levers for recurring fee revenue if the network gains sustained activity.