Circle shares initially jumped 10% but later reversed gains, falling around 3% in premarket trading after the stablecoin issuer delivered quarterly results that beat earnings expectations but came in slightly below revenue forecasts. The company also pointed to rising institutional adoption of its Arc blockchain platform.
Shares of Circle Internet (CRCL) declined roughly 3% before Wednesday’s market open following the release of its second-quarter financial results. While the company exceeded Wall Street’s profit projections, its revenue narrowly missed analyst estimates.
Circle posted adjusted earnings of $0.18 per share, beating the expected $0.16. Revenue and reserve income climbed 7% year over year to $701 million, though the figure was below the $712 million consensus forecast. Net income from continuing operations totaled $48 million, ahead of analysts’ $43 million estimate, while adjusted EBITDA increased 8% to $143 million.
USDC continued to expand during the quarter, with its circulating supply reaching $73.3 billion by the end of June, representing a 19% annual increase. The supply remained below its 2026 high of nearly $80 billion. At the same time, on-chain transaction volume jumped 151% to $14.8 trillion.
Circle CEO Jeremy Allaire said the company’s performance reflected the impact of interest-rate conditions and weaker activity across the broader crypto market. However, he highlighted growing demand from institutional customers, noting that major firms including BlackRock, BNY, and Standard Chartered are moving from initial trials toward broader USDC adoption.
The company also shared further updates on Arc, its layer-1 blockchain designed for institutional financial applications. Circle confirmed that Arc’s public mainnet is expected to launch on September 16.
According to Circle, more than 100 institutions and ecosystem developers are already building applications on Arc. The network’s initial validator lineup includes major financial players such as BlackRock, DTCC, ICE, Mastercard, Visa, Standard Chartered, Galaxy, and MoneyGram.
BlackRock is set to deploy its BUIDL tokenized U.S. Treasury fund on Arc, while DTCC is working on solutions to support the tokenization of securities managed through its infrastructure.
The latest developments underscore Circle’s push to position Arc as key infrastructure for tokenized assets, institutional settlements, and blockchain-based financial services. As demand for tokenization grows, traditional financial companies are increasingly exploring blockchain networks for digital funds, stablecoin payments, and on-chain collateral solutions.
Circle also reported continued growth for its Circle Payments Network (CPN), which reached $14.7 billion in annualized transaction volume over the past 30 days. The figure marks a 76% rise from the previous quarter, with 175 financial institutions now participating in the network.
The company recently received 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 through a federally regulated trust bank charter.
