Stablecoin Operator’s Expansion Beyond USDC Offsets Reserve Yield Pressure
Circle recognized $182 million in revenue from its ARC token presale during the third quarter of 2026, the company’s largest single contributor to earnings as declining yields on USDC reserves compressed income from its flagship stablecoin business.
Total revenue and reserve income reached $865 million in Q3, up 17 percent year-over-year, according to Circle’s earnings report for the quarter ended September 30, 2026. Diluted earnings per share rose to $0.84 from $0.64 in the same period a year earlier. Adjusted EBITDA climbed 85 percent to $317 million, though that figure included the ARC presale contribution. Excluding ARC revenue, adjusted EBITDA fell 21 percent to $135 million.
The Arc blockchain went live on public mainnet on September 16, 2026. Its native ARC token supports network security and governance as Arc moves toward proof of stake in 2027, when Circle anticipates staking rewards will begin. Transaction fees on Arc are paid in USDC.
Circle’s core stablecoin business faced headwinds as reserve returns declined. The company earned $657.6 million in reserve income during Q3, down 8 percent year-over-year, as the reserve return fell 61 basis points to 3.5 percent. The decline reflected a broader tightening in yields: the Federal Reserve raised its benchmark range by 0.25 percent to 3.75 percent to 4 percent in September, one year after holding rates in the 4 percent to 4.25 percent range.
USDC circulation reached $73.9 billion at the end of September, up 8 percent year-over-year. However, USDC’s share of the stablecoin market fell 1.83 percentage points to 27 percent, indicating that competing stablecoins expanded faster. Open Standard’s Open USD stablecoin went live on Solana by September 30, 2026, with Coinbase, Mastercard, Shopify, Stripe, and Visa as founding partners. The Open USD model distributes reserve earnings to partners after a management fee.
Circle Chief Executive Officer Jeremy Allaire framed the company’s strategy beyond stablecoins. “This is not just about payments, and it is not just about digital dollars. It is about multiple compounding flywheels on one platform. Every new member, every new builder, and every new asset makes the whole platform more valuable,” Allaire said.
Circle launched its payments network in May 2025 to connect financial institutions settling cross-border payments with stablecoins. The company is beginning to charge for some payments-network activity. Chief Financial Officer Jeremy Fox-Geen stated the company expected material Circle Payments Network revenue in 2027.
Circle reduced its workforce by approximately 5 percent to align the organization with its operating model and strategic priorities. The company’s share price closed at $74.59 on November 4, 2026, down 0.84 percent on the day.
