Circle: First-half revenue hits $1.4 billion, with nearly 60% going toward partner and transaction costs.

On October 16, Circle released an announcement stating that in the first half of 2026, USDC on-chain settlement volume exceeded $36 trillion, with Circle minting and redeeming over $315 billion worth of USDC during the same period, averaging around $1.7 billion per day. The company said that as of June, USDC accounted for approximately 77% of global stablecoin trading volume, up from 60% a year prior. What drew more market attention was USDC’s revenue allocation. Circle disclosed that the company generated roughly $1.4 billion in revenue in the first half, of which about $819 million went to USDC distribution partners and transaction costs, accounting for around 59% of total revenue; another $473 million was allocated to licenses, banking partnerships, settlement liquidity, compliance frameworks, product development, and multi-chain deployments, making up roughly 34%. Per the announcement’s metrics, Circle retains only about 7 cents in net profit for every $1 of revenue it earns. The announcement appears to be a response to market skepticism over “stablecoin issuers hoarding reserve profits”. Circle stated that partners can share corresponding reserve earnings by holding and growing USDC balances on their platforms; more than 150 exchanges, wallets, banks, fintech firms, payment platforms, and enterprises have now formed economic ties tied to USDC’s growth. Circle also noted that Binance signed a five-year commercial agreement with it in September and invested $100 million in the company. On the product front, Circle announced an expansion of its free redemption mechanism: all Circle customers can still redeem USDC for free via traditional banking channels, with funds typically arriving in no more than two business days; eligible customers making payments through the Circle Payments Network or using products like Arc, Circle Mint, and Circle Wallets will gain access to free, near-real-time redemption capabilities.