Circle's Stablecoin Empire Faces Pressure from New Blockchain
Circle, the issuer of USDC stablecoins, posted $701.3 million in revenue and reserve income for Q2 2026. After paying $410.4 million in distribution and transaction costs, it reported an operating income of $34.4 million.
Average quarterly circulation of USDC reached an all-time high, with Circle's platform share growing by 73% year-over-year.
The introduction of Arc, a blockchain operated through a permissioned validator network, may help shift the relationship between Circle and its distribution partners. By creating a network centered around stablecoins, financial applications, and developer services, Arc could attract balances that currently benefit partners more than Circle.
Arc also introduces new participants with claims on the economics, including validators, liquidity providers, and prospective token holders.