Circle kept just 7 cents of every USDC revenue dollar as $36 trillion flowed through in H1
USDC handles record volume, but Circle's profit margin is slim
Circle reported that its USDC stablecoin processed more than $36 trillion in on-chain transactions during the first six months of 2026. Despite that massive activity, the company kept only about $103 million in net profit — roughly seven cents for every dollar of revenue it earned.
The disclosure, released October 16 by Chief Commercial Officer Kash Razzaghi, shows that Circle spent 93% of its H1 revenue on distribution payments, operating costs, and network investment. Newer stablecoin competitors have argued that established issuers like Circle keep too much of the income generated by user reserves, and the figures give Circle a chance to explain its cost structure.
Where the money went
Circle generated approximately $1.4 billion in revenue in the first half of 2026. The breakdown:
- $819 million went to distribution partners and transaction costs.
- $473 million covered operating expenses and network investment.
- About $103 million remained as net profit.
The company earns most of its revenue from the cash and U.S. government securities that back USDC. Exchanges, wallets, and payment companies that attract users and hold USDC balances receive a cut of the income those balances generate.
Coinbase and Binance drive distribution costs
Coinbase remains Circle's largest and longest-standing distribution partner. Average USDC held across Coinbase's products reached a record $20 billion in the second quarter, up 44% from a year earlier, according to Circle's figures.
Circle has also expanded beyond the U.S. market. Binance signed a five-year commercial agreement in September and invested $100 million in Circle. More than 150 partners now have an economic interest in USDC's growth, giving Circle access to exchanges, fintech apps, banks, and payment services that serve millions of customers worldwide.
USDC's share of global stablecoin volume grows
By June, USDC accounted for about 77% of global stablecoin transaction volume, up from 60% a year earlier, Circle said. The company also reported more than $315 billion in combined USDC issuance and redemptions over the first six months, averaging about $1.7 billion per day. Second-quarter minting and redemptions totaled $170 billion, up 105% from the same period last year.
Supporting that activity requires substantial cash reserves and banking infrastructure. Circle holds cash at banking partners so customers can redeem USDC for dollars quickly, including on weekends and holidays. That money earns less than funds invested in Treasury securities, and maintaining those balances ties up resources Circle could otherwise invest.
Circle pushes back on rival claims
Razzaghi's statement directly challenged newer stablecoin providers that claim established issuers retain too much reserve income and charge excessive redemption fees. Circle argues that sharing more earnings with distributors must be balanced against the cost of maintaining the banking access, liquidity, and compliance systems that let USDC operate across international markets.
What this means for the stablecoin market
The disclosed numbers highlight a key tension in the stablecoin industry. Distributor partners like Coinbase and Binance help drive USDC adoption, but they also take a significant slice of the revenue. As rivals offer more generous profit-sharing deals, Circle faces pressure to either improve margins or risk losing distribution partners to competitors.
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.