Circle Internet reported $143 million in adjusted EBITDA for the second quarter of 2026, while USDC minting volume reached $83 billion. The results underscore the stablecoin issuer's ability to generate cash, but also highlight the pressure from shifting interest rates on its core revenue streams.
USDC minting stays strong
The $83 billion in USDC minted during Q2 marks a significant level of activity for the second-largest stablecoin by market cap. Circle did not break out net issuance or total circulating supply in the earnings release, but the minting figure suggests continued demand from both retail and institutional users. The company has been expanding USDC's availability across blockchains and payment platforms, which likely contributed to the volume.
Interest rate headwinds
Circle's earnings statement acknowledged that fluctuating interest rates are making it harder to sustain revenue growth. The company earns most of its income from reserves backing USDC, which are held in short-term Treasuries and cash equivalents. When rates fall, the yield on those reserves shrinks, directly pressuring Circle's top line. The Q2 adjusted EBITDA of $143 million came in below some analyst expectations, though Circle did not provide a prior-year comparison in the release.
What the numbers mean for strategy
The earnings report arrives as Circle faces a more competitive stablecoin landscape. Rivals like PayPal's PYUSD and new entrants are vying for market share, while regulatory clarity in the U.S. remains incomplete. Circle has been pushing into international markets and exploring a public listing, but the interest rate sensitivity of its business model remains a central question for investors. The company did not update its IPO timeline in the Q2 release.
Circle's next quarterly report will show whether it can maintain adjusted EBITDA growth if the Federal Reserve continues to cut rates. The company also faces the challenge of diversifying revenue beyond reserve yield, something it has hinted at but not detailed in this earnings update.
