Circle Reports Q2 Earnings, USDC Stablecoin Circulation Reaches $65.2 Billion

Circle Internet Group's Q2 earnings report highlights the growth of its USDC stablecoin to $65.2 billion in circulation, representing a 90% YoY increase. The company's on-chain transaction volume also accelerated, with a 5.4x YoY growth in Q2 and $2.4 trillion in transactions in July. Circle CEO Jeremy Allaire sees this as evidence of mainstream adoption and the need for infrastructure to support stablecoin-based finance.

Circle Internet Group (Circle), the company behind the popular USDC stablecoin, reported strong growth in its Q2 earnings, with USDC reaching $65.2 billion in circulation, a 90% year-over-year increase. The company's on-chain transaction volume also accelerated, with a 5.4x year-over-year growth in Q2 and $2.4 trillion in transactions in July. CEO Jeremy Allaire highlighted the growing mainstream adoption of stablecoins and the need for infrastructure to support stablecoin-based finance.

Circle's USDC stablecoin, which is pegged to the US dollar, has seen significant growth in circulation and transaction volume. According to the company's Q2 earnings report, USDC circulation reached $65.2 billion by August 10, up from $61.3 billion at the end of Q2. The company's on-chain transaction volume for USDC hit $5.9 trillion in Q2, a 5.4x increase from the prior year.

The company's growth is driven by several strategic moves. In May, Circle launched the Circle Payments Network (CPN), which enables financial institutions to use stablecoins for payments. The network debuted with four active cross-border corridors and over 100 institutions in the onboarding pipeline. Additionally, Circle unveiled Circle Gateway in July, offering instant, cross-chain liquidity for USDC without bridging or capital prepositioning.

Circle's most ambitious infrastructure play is Arc, an open Layer-1 blockchain built for stablecoin finance. Arc offers sub-second settlement, USDC as native gas, an integrated foreign exchange (FX) engine, and opt-in privacy features. The company expects to launch a public testnet for Arc this fall.

Despite the strong growth, Circle faces an increasingly competitive environment. Yield-bearing digital assets, particularly tokenized money market funds, are emerging as alternatives for treasurers seeking stability and income. Circle's USYC (yield-bearing variant of USDC) is positioning itself as a yield-bearing collateral, but its adoption will depend on regulatory treatment and integration with existing treasury systems.

Circle's Q2 earnings report underscores the company's leadership in the stablecoin market and its commitment to building infrastructure to support stablecoin-based finance. The company's strategic moves, including the launch of CPN and Circle Gateway, and the development of Arc, are aimed at expanding its reach into payments, treasury management, and capital markets. However, the company will need to navigate the competitive environment and ensure regulatory compliance to maintain its leadership position.

References:
[1] https://thecoinrise.com/circle-unveils-arc-blockchain-to-strengthen-stablecoin-leadership/
[2] https://www.pymnts.com/earnings/2025/circle-usdc-volume-hits-6-trillion-dollars-race-first-mover-advantage/