USDC Rvenue Hits $1.4B as Circle Pays $819M in Costs

Circle disclosed how its USDC business generated and distributed approximately $1.4 billion in revenue during the first half of 2026. The stablecoin issuer said distribution partners and related transaction costs accounted for approximately 59% of revenue.

The Oct. 16 disclosure also detailed the company’s infrastructure spending, payment services, and redemption arrangements. Circle said USDC processed more than $36 trillion in on-chain transaction volume between January and June.

Chief Commercial Officer Kash Razzaghi published the figures as competition among stablecoin issuers intensified.

Circle Reports $1.4B in H1 2026 Revenue as USDC Costs Consume 59%

Of the $1.4 billion in revenue, about $819 million went to USDC distribution partners and transaction costs. That works out to roughly 59 cents of every dollar flowing to the platforms that make the stablecoin available to users.

The partner payouts follow adoption. Platforms that hold and grow USDC balances earn a share of the reserve income those balances generate, so the bigger the balance, the bigger the cut.

Coinbase is the largest example. In its second-quarter results, the exchange reported that average USDC held in its products hit a record $20 billion, up 44% year over year.

Coinbase is far from the only one. In September, Binance signed a five-year commercial agreement with Circle and invested $100 million in the company.

More than 150 other partners, including neobanks, fintechs, payment platforms and enterprises, also hold an economic interest in USDC’s growth.

Where Circle’s $1.4B Revenue Went – Distribution, Compliance and Product Costs

After partner payouts, Circle spent about $473 million, or 34% of revenue, on running and growing the network. That bucket covers licenses, banking relationships, settlement liquidity, compliance programs, new products and blockchain integrations.

The company says this spending is what makes the stablecoin usable at scale. USDC now sits behind more than 55 licenses and registrations, including an OCC national trust bank charter and MiCA compliance in Europe.

It works with over 25 partner banks, runs compliance and sanctions programs across 185 countries and is deployed natively on more than 35 blockchains. Reserves are held in a government money market fund managed by BlackRock and custodied at BNY, with monthly attestations.

Circle used the breakdown to push back on rivals promising to pass along a “substantial majority” of their economics.

Its argument is that redemption, compliance and resilience still cost money, and an issuer that gives everything away has nothing left to fund them.

24/7 USDC Redemptions Now Available for Eligible Customers

Alongside the financials, Circle confirmed changes to how USDC redemptions work. Every customer can still redeem for free via standard banking rails, with settlement within up to 2 business days.

The new part is speed. Businesses moving payment flows over the Circle Payments Network (CPN), such as card networks, processors, remittance firms and fintechs, can now redeem USDC for free in near real time, around the clock.

Customers on the Circle Platform can qualify for the same treatment by holding USDC balances or building with products like Arc, Circle Mint and Circle Wallets.

To make that work, the company keeps a large pool of cash pre-positioned with its bank partners, ready to move the moment a redemption confirms on-chain.

That cash stays liquid, so it earns less than Treasuries would. The company absorbs that cost for customers who participate in the network rather than charging a fee.

The volumes involved are large. Circle redeemed $71.8 billion in USDC in Q1 2026 alone, about 90% of the supply in circulation at the time.

In Q2, combined minting and redemption volume reached $170 billion, up 105% from a year earlier.

USDC Processes $36T in On-Chain Volume as Stablecoin Usage Expands

USDC settled more than $36 trillion in on-chain transaction volume during the first half of 2026. Over the same period, more than $315 billion was minted and redeemed, averaging about $1.7 billion per day, including weekends and holidays.

Its share of the market has grown, too. By June, USDC carried roughly 77% of global stablecoin transaction volume, up from 60% a year earlier.

Visa and Mastercard both settle in USDC seven days a week, including when traditional banks are closed, and a growing number of banks hold it as a reserve asset.

The company describes its model as a flywheel. Partners grow USDC since they share in the revenue, that growth pays for more licenses, liquidity and chain support, and a more useful dollar pulls in the next wave of developers and businesses.

This article is for informational purposes only and does not constitute financial or investment advice.