Circle shares initially climbed 10% but later slipped around 3% in premarket trading after the stablecoin issuer reported quarterly results that beat profit expectations but fell short on revenue. The company also highlighted increasing institutional adoption of its Arc blockchain network.
Shares of Circle Internet (CRCL) dropped about 3% before the market opened Wednesday after the company released its second-quarter earnings report. While Circle delivered stronger-than-expected earnings, revenue narrowly missed Wall Street estimates.
The company posted adjusted earnings of $0.18 per share, surpassing the analyst forecast of $0.16. Revenue and reserve income rose 7% from the previous year to $701 million, slightly below the $712 million expected by analysts. Net income from continuing operations reached $48 million, exceeding the $43 million estimate, while adjusted EBITDA increased 8% to $143 million.
Circle’s USDC stablecoin continued to gain traction during the quarter. Circulating supply reached $73.3 billion by the end of June, up 19% year-over-year, though below the 2026 high of nearly $80 billion. Meanwhile, on-chain transaction volume jumped 151% to $14.8 trillion.
Circle CEO Jeremy Allaire said the company’s latest financial performance reflected the impact of current interest-rate conditions and slower activity across crypto markets. However, he pointed to continued growth among institutional users, noting that companies such as BlackRock, BNY, and Standard Chartered are expanding their USDC usage rather than simply testing the technology.
The earnings release also provided new details on Arc, Circle’s layer-1 blockchain designed for institutional use, with its public mainnet scheduled to go live on Sept. 16.
Circle said more than 100 institutional and ecosystem developers are currently building on Arc. The blockchain’s initial validator group includes major financial firms such as BlackRock, DTCC, ICE, Mastercard, Visa, Standard Chartered, Galaxy, and MoneyGram.
BlackRock is expected to deploy its BUIDL tokenized U.S. Treasury fund on Arc, while DTCC is developing systems to support the tokenization of securities managed through its depository platform.
The announcements reinforce Circle’s broader plan to position Arc as core infrastructure for tokenized assets, institutional settlement, and blockchain-based financial services. Traditional financial institutions have increasingly explored blockchain networks for tokenized funds, stablecoin payments, and digital collateral management as the tokenized asset sector expands.
Circle also reported strong growth for its Circle Payments Network (CPN), which reached $14.7 billion in annualized transaction volume over the last 30 days. The figure represents a 76% increase from the previous quarter, with 175 financial institutions now participating.
The company recently secured approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Circle National Trust, allowing it to operate as a stablecoin issuer with a federally regulated trust bank charter.
