Circle's USDC saw gross redemptions outpace gross mints by roughly $4 billion in the second quarter of 2026, according to the company's latest financial update. The stablecoin issuer also raised its full-year other revenue guidance to between $310 million and $330 million, nearly doubling the midpoint from $160 million to $320 million, driven by the presale of its ARC Token.
Redemptions exceed mints by $4 billion
In Q2 2026, USDC gross redemptions hit $87 billion while gross mints totaled $83 billion. That left a net redemption of about $4 billion for the quarter. The company did not provide a specific reason for the imbalance, but the numbers reflect ongoing demand for the stablecoin's liquidity and use in on-chain activity.
Quarter-end USDC circulation stood at $73.3 billion, with a quarterly average of $76.5 billion — up 19% year-over-year. That average circulation figure is the metric Circle uses to calculate reserve income, which grew 5% to $667.7 million even though the reserve yield fell 66 basis points to 3.5% compared to the same period last year.
ARC Token presale drives guidance hike
Other revenue — which excludes reserve income — climbed 41% year-over-year to $33.582 million, thanks to growth in subscription and services. But the big story is the ARC Token presale. Estimated gross proceeds from two closings total about $242.25 million. Circle does not separately disclose recognized revenue from the presale, but the company raised its FY2026 other revenue guidance to $310-$330 million from $150-$170 million, effectively doubling the midpoint to $320 million.
The ARC Token is tied to Circle's Arc mainnet, a blockchain platform designed for tokenized real-world assets. The mainnet is scheduled for public launch on September 16, 2026.
Reserve income up despite lower yield
Circle's reserve yield dropped 66 basis points year-over-year to 3.5%, reflecting the broader interest rate environment. But because the average USDC balance was larger — $76.5 billion versus roughly $64 billion a year earlier — reserve income still rose 5% to $667.7 million. That dynamic shows how a bigger base can offset a lower yield.
The company's other revenue line, at $33.582 million, is a smaller piece of the pie but growing fast. Subscription and services revenue drove the 41% increase, though Circle did not break out specific contributors beyond the ARC Token presale.
All eyes are now on the Arc mainnet launch in September. Whether the token presale revenue will continue to lift guidance in future quarters remains an open question.
