USDC processed $36 trillion in H1 transactions, but Circle kept just 7 cents of every revenue dollar. Circle's latest disclosure reveals the enormous cost of distributing and operating its stablecoin as competitors promise partners a bigger share of earnings. Senior Reporter - CryptoSlate Oct. 16, 2026 Quick take. * 01 USDC captured a reported 77% of stablecoin transaction volume in June, yet Circle retained just seven cents in profit per revenue dollar. * 02 Coinbase held an average $20 billion in USDC, underscoring the growing influence of major distributors over stablecoin adoption and earnings. * 03 Circle now faces a critical test: Can it maintain USDC's market position while competitors offer partners more generous revenue-sharing deals? Stablecoin issuer Circle spent 93% of its first-half revenue on distribution, operations, and investment as USDC processed more than $36 trillion in transactions. The stablecoin issuer generated about $1.4 billion in revenue in the first six months of 2026, but $819 million went to distribution partners and transaction costs, while another $473 million covered operating expenses and network investment. Circle retained roughly seven cents of every dollar earned as net profit, about $103 million. The figures, released Oct. 16 by Chief Commercial Officer Kash Razzaghi, form part of Circle's response to newer stablecoin providers promising businesses a bigger share of the earnings generated by digital dollars. Circle argues that the money it retains must pay for the banking access, liquidity, and compliance systems that let USDC operate across international markets. Coinbase helps drive Circle's $819 million distribution bill. Circle earns most of its revenue from the assets backing USDC, which include cash and US government securities. Exchanges, wallets, and payment companies that attract users and maintain USDC balances receive a share of the income those balances generate. That arrangement makes distribution a significant expense, but it also gives major partners a financial incentive to promote USDC. The more customers and balances a platform brings to the network, the more it can earn. Coinbase remains Circle's largest and longest-standing distribution partner. Average USDC held across the exchange's products reached a record $20 billion in the second quarter, up 44% from a year earlier, according to figures Circle cited. Circle has been extending that approach beyond its longstanding US partner. Binance signed a five-year commercial agreement in September and invested $100 million in Circle, while more than 150 other partners have an economic interest in USDC's growth. Those agreements give Circle access to exchanges, fintech applications, banks and payment services that already serve millions of customers. They also make the issuer's share of retained revenue an increasingly important consideration as rival stablecoins compete for the same distribution channels. USDC's $36 trillion transaction boom comes with liquidity costs. Circle said USDC processed more than $36 trillion in on-chain transaction volume in the first half of 2026. By June, it accounted for approximately 77% of global stablecoin transaction volume, up from 60% a year earlier, according to the company's figures. The transaction activity reflects how extensively USDC moves across blockchain networks. Separately, Circle reported more than $315 billion in combined issuance and redemptions over the six months, about $1.7 billion daily. Second-quarter minting and redemptions totaled $170 billion, up 105% from the same period last year, indicating growing demand for moving money between traditional banking accounts and blockchain-based dollars. Supporting that activity requires substantial cash reserves and banking infrastructure, particularly as payment companies increasingly demand access to dollars outside normal business hours. Circle says direct customers have always been able to redeem USDC without fees through regular banking channels, where settlement can take up to two business days. The company now offers eligible customers free, near-real-time redemptions through the Circle Payments Network and its platform products, allowing participating businesses to convert USDC into dollars around the clock. However, faster conversions come at a cost. Circle holds cash at banking partners so customers can receive dollars when they redeem USDC, including during weekends and holidays. That money must remain readily available and typically earns less than funds invested in Treasury securities. Maintaining those balances, along with the banking relationships needed to move them, ties up resources Circle could otherwise invest elsewhere. Circle challenges rivals over stablecoin profit sharing. Razzaghi's statement directly challenged newer stablecoin providers that claim established issuers retain too much reserve income and charge excessive redemption fees. Circle's position is that sharing more earnings with distributors must be balanced against the expense of maintaining the infrastructure required to support growing transaction activity. The company pointed to more than 55 licenses and regulatory registrations, relationships with over 25 banking partners and native USDC deployments across more than 35 blockchains. It also highlighted reserves held in a government money market fund managed by BlackRock and custodied at BNY, alongside compliance operations covering 185 countries. These investments help Circle serve financial institutions operating under different regulatory requirements while maintaining the liquidity needed to process large withdrawals. However, competing stablecoin issuers are increasingly offering payment platforms and other distributors greater participation in reserve earnings, creating pressure on the economics of Circle's existing arrangements. The company now faces the commercial challenge of attracting additional USDC balances while preserving enough revenue to fund its expanding settlement network. Circle is scheduled to report third-quarter financial results on Nov. 4, giving investors another chance to assess how distribution costs are changing as the issuer expands partnerships and offers faster, free redemptions to more businesses. Article context

Circle Gateway crosses $10 billion in cumulative USDC transfer volume. 2026-10-15 10:25:54 Key takeaways. * Circle's Gateway product crossed ten billion dollars in cumulative USDC transfer volume on October 15, 2026. * Gateway volume doubled over summer 2026, reaching 9.09 billion dollars by late August from 4.5 billion in early July. * Gateway transfers complete in under 500 milliseconds across Ethereum, Base, Arbitrum, Avalanche, and Polygon PoS networks. Circle's Gateway product crossed $10 billion in cumulative transfer volume, the company announced on October 15, 2026. The multichain USDC transfer service addresses liquidity fragmentation by allowing businesses to maintain one unified balance across multiple blockchains instead of pre-funding separate reserves on each network. Gateway launched on mainnet around August 2025 and doubled its lifetime volume over summer 2026, growing from over $4.5 billion in early July to $9.09 billion by late August according to Dune analytics data. Gateway volume doubled over summer 2026. According to analytics from Dune, Gateway's lifetime USDC minting and transfer volume stood at over $4.5 billion in early July 2026. By late August 2026, the same Dune data showed roughly 744,000 cumulative transfers and $9.09 billion in USDC volume. The product reached the $10 billion milestone on October 15, 2026. Recent activity reports put Gateway's daily transaction volumes in the tens of millions. The customer base includes payment service providers, exchanges, custodians, and wallet services. Gateway completes transfers in under 500 milliseconds. Once a balance is established, Gateway transfers complete in under 500 milliseconds. Gateway relies on non-custodial smart contracts for deposits - users put USDC into contracts that Circle doesn't take custody of. Minting is handled through an off-chain attestation system where Circle signs off on a transfer outside the blockchain, and the destination chain then mints the corresponding USDC. Gateway treats USDC as one pool that can show up wherever it's needed, breaking from the traditional point-to-point cross-chain transfer model. Supported networks include Ethereum and base. Supported networks include Ethereum, Base, Arbitrum, Avalanche, and Polygon PoS, with the list continuing to grow. Circle has added features like programmatic minting and Fast Deposit options aimed at companies that want to automate how they move money between chains. CCTP handles direct chain-to-chain transfers. Circle's Cross-Chain Transfer Protocol, known as CCTP, runs alongside Gateway and supports direct transfers of USDC between chains. CCTP handles moving USDC from one place to another, while Gateway is built around the idea of a single balance that never has to be split up in the first place. Both products target liquidity fragmentation - as USDC has spread across more blockchains, businesses have had to pre-fund reserves on each network they touch. Faq. What did Circle announce on October 15, 2026? Circle announced that its Gateway product crossed $10 billion in cumulative transfer volume on October 15, 2026. How fast does Gateway complete transfers? Once a balance is established, Gateway transfers complete in under 500 milliseconds. What networks does Gateway support? Supported networks include Ethereum, Base, Arbitrum, Avalanche, and Polygon PoS, with the list continuing to grow. Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

Citi has named Circle Internet Group and Bullish as its highest-conviction digital asset picks, citing their exposure to stablecoin adoption and tokenized capital markets infrastructure. The bank rates Circle a Buy with a $243 price target, against a current price of $83.87. Circle launched its Arc mainnet on September 16, and the network has since gathered about $560 million in DeFi total value locked and more than $510 million in stablecoin supply, roughly 98% of it USDC. Citi also rates Bullish a Buy, with a $50 target against $31.63. It sees Bullish's pending Equiniti acquisition as a strategic edge, with management targeting $25 million to $50 million in annualised net cost cuts.