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Circle says USDC redemptions beat mints by about $4 billion in Q2
Circle raised its FY2026 other revenue outlook to a $310 million to $330 million range, citing added ARC Token presale contribution alongside reserve-income growth.
Circle reported that in the second quarter, gross USDC redemptions exceeded mints by about $4 billion, even as its reserve income continued to grow. Circle attributed the higher reserve income to a larger average USDC balance, despite reserve yield slipping.
In its Aug. 5 earnings release, Circle said USDC circulation ended the quarter at $73.3 billion, compared with a $76.5 billion quarterly average, and circulation was 19% higher than a year earlier. The reserve return rate fell 66 basis points year over year to 3.5%, while reserve income rose 5% to $667.7 million.
Circle also reported that other revenue climbed 41% year over year to $33.582 million, which it rounded to about $34 million and linked to growth in subscription and services revenue. Looking ahead, it raised FY2026 other revenue guidance to $310 million to $330 million from the prior $150 million to $170 million range issued in May.
The updated guidance includes recognized revenue tied to the ARC Token presale, which Circle previously described as having estimated gross proceeds of about $242.25 million across two closings. Circle did not break out ARC Token presale revenue separately, and it scheduled Arc’s public mainnet for Sept. 16. According to CryptoSlate, USDC was up about 0.01% over the past 24 hours at the time of publication.