Circle Q1 2026: USDC Volume Hits $21.5 Trillion as Revenue Reaches $694 Million
Circle Internet Group (NYSE: CRCL) delivered its first full quarterly earnings report as a public company on May 11, 2026, revealing $694 million in total revenue and reserve income alongside a 263% year over year surge in USDC on chain transaction volume to $21.5 trillion, numbers that arrived in a week already defined by congressional stablecoin legislation, the Nasdaq debut of rival fintech Wise , and the launch of Circle's own Agent Stack platform.[1][2] A Defining Week for Digital Payments The timing of the May 11 release compressed several months of regulatory and competitive narrative into a single session. Just one week earlier, on May 4, Circle shares surged approximately 20% after Senators Thom Tillis and Angela Alsobrooks released a bipartisan compromise framework for the Digital Asset Market CLARITY Act , resolving a prolonged standoff over whether stablecoin issuers could offer yield on passive holdings.[3] The compromise preserved activity based rewards tied to trading, transactions, and staking, while prohibiting interest on dormant deposits, an outcome analysts described as a structural advantage for Circle's transaction volume model.[3] That legislative backdrop gave the Q1 numbers additional weight. Circle's revenue model derives the vast majority of its income from reserve income earned on USDC holdings and from fees tied to network activity, not passive yield distribution, placing it squarely within the CLARITY Act's permissible structure.[3] Q1 2026 Financial Results | Metric | Q1 2026 | Year over Year Change | | | | | | Total Revenue and Reserve Income | $694 million | +20% | | Reserve Income | $653 million | +17% | | Other Revenue | $42 million | +$21 million | | Adjusted EBITDA | $151 million | +24% | | Net Income (continuing operations) | $55 million | 15% | | USDC in Circulation (quarter end) | $77.0 billion | +28% | | USDC On Chain Transaction Volume | $21.5 trillion | +263% | | CPN Annualized Transaction Volume | $8.3 billion | +17% QoQ | | USDC Share of Stablecoin Tx Volume | 63% | per Visa Onchain Analytics | Total revenue came in at $694 million, up 20% year over year, though it declined sequentially from the $770 million reported in the fourth quarter of 2025.[1][4] Reserve income of $653 million grew 17%, driven by a 39% rise in average USDC in circulation, partially offset by a 66 basis point decline in the reserve return rate as interest rates compressed.[1] Other revenue reached $42 million, doubling year over year as subscription, services, and transaction revenues gained traction.[1] Adjusted EBITDA expanded 24% to $151 million, sustaining a 53% adjusted EBITDA margin and reflecting what management characterized as disciplined cost execution even as the company absorbed elevated post IPO operating expenses.[4] Total operating expenses rose 76% year over year to $242 million, with the increase attributable primarily to stock based compensation and related payroll taxes following Circle's listing.[1] Net income from continuing operations declined 15% to $55 million as those one time costs offset revenue growth.[1] The 263% Volume Figure and What It Means The headline statistic from the quarter was the 263% year over year increase in USDC on chain transaction volume to $21.5 trillion.[1][2] Circle disclosed that approximately $9 trillion of the quarter over quarter volume increase was attributable to market making repricing activity on the decentralized exchange Aerodrome, providing context for the magnitude of the acceleration.[4] Even with that component isolated, the underlying organic volume growth confirmed broad USDC adoption across payments, institutional settlement, and decentralized finance. Visa Onchain Analytics attributed 63% of all stablecoin transaction volumes to USDC during the quarter, underscoring the token's dominance in its category.[1] On CNBC's Squawk Box on May 12, CEO Jeremy Allaire stated that USDC accounts for roughly 80% of dollar denominated digital currency transactions, framing the stablecoin as the de facto settlement layer for internet native commerce.[5] "Circle's first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack. With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI native economic activity and a more programmable internet financial system." Jeremy Allaire, Co Founder, CEO, and Chairman, Circle Internet Group [1] Supply Trajectory and the $150 Billion Target USDC in circulation reached $77.0 billion at the end of March, up 28% year over year but roughly flat sequentially, a figure that came in slightly below analyst expectations of $80 billion.[2][3] Management reaffirmed its target of reaching $150 billion in USDC supply during the second half of 2026, a goal that would require roughly doubling circulation from current levels.[2] As of April 10, supply had already climbed to approximately $112 billion, suggesting momentum building into the second quarter.[2] The Circle Payments Network continued its expansion, with annualized transaction volume reaching $8.3 billion based on trailing 30 day activity as of March 31, up 17% quarter over quarter.[1] Management noted that by May 7, CPN was approaching $10 billion in annualized volume, representing nearly 75% growth since the prior report.[4] New Products and the Arc Ecosystem Alongside the earnings release, Circle disclosed a $222 million presale of its ARC token at a $3 billion fully diluted network valuation, with participation from a16z crypto, Apollo Funds, ARK Invest, BlackRock, General Catalyst, Haun Ventures, Intercontinental Exchange, and Standard Chartered Ventures, among others.[1] The company also unveiled its Agent Stack , a suite of permissionless infrastructure tools targeting the emerging AI agent economy.[1] New products including Circle CLI, Agent Wal…