Circle reported $694 million in first-quarter 2026 revenue and reserve income, up 20% from a year earlier, as USDC circulation climbed to $77 billion. During the same quarter, USDC on-chain transaction volume rose 263% year over year to $21.5 trillion.
The earnings release also included a major fundraising update. Circle said its ARC token presale brought in $222 million, valuing the Arc blockchain network at a $3 billion fully diluted valuation. Backers named by the company included a16z crypto, BlackRock, Apollo, Intercontinental Exchange, and SBI Group.
Reserve income remained the main revenue driver
Circle said reserve income reached $653 million in the quarter, a 17% increase from the prior year. The company linked that growth to higher average USDC circulation, though it said lower reserve return rates partially offset the gain. Other revenue totaled $42 million, up by $21 million year over year, supported by transaction revenue as well as subscription and service revenue.
USDC remained central to the quarter’s growth. By period end, circulation had reached $77 billion. Activity on-chain expanded at a much faster pace, with quarterly transaction volume hitting $21.5 trillion, pointing to heavier usage of the stablecoin in payments and settlement flows across blockchain networks.
Expenses jumped, but adjusted EBITDA still rose
Circle’s operating expenses increased sharply to $242 million, up 76% from a year earlier. The company said the rise was mainly driven by stock-based compensation and infrastructure investment.
Even with that increase, adjusted EBITDA climbed 24% to $151 million. Net income from continuing operations came in at $55 million, though that figure was down 15% from the same period last year. The split in those results showed stronger adjusted operating performance while net income moved lower as spending expanded.
ARC whitepaper outlines governance and security role
Alongside the presale announcement, Circle released the ARC token whitepaper. It described the token’s role in governance, network security, and operational coordination across Arc infrastructure. Circle said Arc infrastructure is being built to support AI-native financial activity and programmable payment systems.
During the quarter, the company launched several products under its Agent Stack initiative, including Circle CLI, Agent Wallets, and Agent Marketplace. Circle said those tools are designed to let developers and merchants build and monetize agent-driven activity using USDC across multiple blockchains.
Payments network reached $8.3B annualized volume
Circle also expanded its Circle Payments Network. Based on trailing 30-day activity through March 31, 2026, the company said annualized transaction volume across the network reached $8.3 billion. Taken together, the quarter’s disclosures showed growth in Circle’s stablecoin base while capital and product development continued to move toward payments infrastructure and AI-linked financial tools.