Circle lifts revenue and reserve income to $865 million in the third quarter

Average USDC in circulation reaches $73.3 billion

Circle Internet Group released its third-quarter 2026 results on November 4. The company said average USDC in circulation reached $73.3 billion, up 8% year over year, while onchain transaction volume totaled $13.9 trillion, a 49% increase. The two indicators measure different things: the first describes the stablecoin’s average outstanding balance during the period, while the second adds up blockchain movements and is neither revenue nor a measure of commercial payments.

Revenue and reserve income totaled $865 million, up 17% from a year earlier. Net income from continuing operations reached $226 million, an increase of 5%, and Circle’s reported adjusted EBITDA was $317 million, up 85%. The last figure is a non-GAAP measure: it should be read together with the company’s published reconciliation, rather than treated as a direct substitute for net income.

Lower rates weigh on reserve income

Reserve income fell 8% to $658 million. Circle attributed the decline to a 61-basis-point reduction in the reserve return rate, partly offset by higher USDC circulation. The model therefore remains sensitive to two separate variables: the amount of stablecoins in circulation and the yield earned on reserve assets. Growth in outstanding balances does not, by itself, guarantee higher income if investment yields fall far enough.

Other revenue jumped 627% to $207 million. The company said $182 million came from the ARC token presale. That one-time contribution explains most of the acceleration and should not be extrapolated as a recurring revenue source. At September 30, the balance sheet showed $73.575 billion in cash and equivalents held for stablecoin holders against $73.451 billion in related deposits. These accounting lines are a period-end snapshot, distinct from the quarterly average circulation of $73.3 billion.

Payment networks advance, but next steps remain conditional

Circle put Circle Payments Network’s annualized payment volume at $41.3 billion. The company also announced its planned acquisition of Tazapay, which is expected to close in 2027, subject to regulatory approvals and other customary conditions. It is therefore a proposed transaction, not an asset already integrated into Circle. The disclosed figures indicate greater use of the infrastructure, but do not by themselves establish the quality of each transaction or the network’s future profitability.

The next evidence to watch will be USDC circulation, reserve yields, the genuinely recurring share of other revenue and the actual closing of the Tazapay acquisition. Circle also warns that its outlook remains subject to market conditions, regulation and risks specific to digital assets. As of November 5 in Paris, the verifiable picture is therefore mixed: activity and profit are growing, but part of the quarter’s increase came from a token presale and reserve income remains exposed to the path of interest rates.