$32 Trillion in USDC Transfers, But Circle's Revenue Still Dependent on Interest Rates
Circle's USDC stablecoin processed an adjusted transfer volume of $32 trillion in 2026, according to Coin Metrics' analysis. This figure represents a significant milestone for the company, demonstrating the widespread adoption and usage of its stablecoin.
However, despite this impressive growth, Circle's revenue remains heavily reliant on interest rates. In its second-quarter earnings report, the company revealed that 95.2% of its total revenue came from reserve income, which is essentially the interest earned on the assets backing USDC. This means that while the transfer volume of USDC may be substantial, it does not directly translate to revenue for Circle.
The Arc blockchain infrastructure, set to launch in public mainnet on September 16, aims to address this issue by creating a direct fee surface around some of the activity generated by USDC. If successful, Arc could help Circle capture a repeatable share of the revenue from USDC usage, rather than relying solely on interest rates.