Aug 5, 2026 earnings call — Arc Mainnet launch and USDC expansion
Circle reported total revenue and reserve income of $701 million and announced Arc Mainnet launch on September 16.
Revenue $0.7B (est $0.7B) · EPS $0.18 (est $0.16)
Key quotes
"We hold over 55 licenses and registrations across major jurisdictions."
"Arc Mainnet will launch this quarter on September 16."
"Already today, the USDC network alongside payment protocols like x402 handles 99.3% of agentic payments."
Analyst Q&A 6
USDC distribution and partnerships
Q (Peter Christiansen · Citi): He asked how Circle will compete if reserve income sharing becomes common, and whether Circle is constrained by its relationship with Coinbase or can deploy distribution alongside Coinbase.
A: Jeremy said Circle already has large distribution with partnerships and incentives, including over 150 companies. He said Circle often works together with Coinbase and can form partnerships with other major companies where it makes sense to grow USDC.
"We absolutely have the opportunity together with Coinbase to form partnerships where it makes sense, where we believe that a company can really materially help drive the growth and adoption of USDC." — Jeremy Allaire (CEO·CHAIR)
Hyperliquid arrangement and Arc guidance
Q (Kenneth Suchoski · Autonomous): He asked for more detail on Arc presale and whether that is included in guidance, and for specifics of the Hyperliquid deal and Circle/Coinbase roles.
A: Jeremy said Hyperliquid chose USDC because of its liquidity, network effects, institutional preference and regulatory availability, and called such platforms liquidity "Supernovas." Jeremy Fox-Geen said you can see on-chain where funds sit: at quarter end about 90% of Hyperliquid's USDC was in Coinbase and about 10% was in Circle, and they will not disclose precise revenue-share details.
"At quarter end, approximately 90% of Hyperliquid's total USDC was held within Coinbase's platform and about 10% of Hyperliquid's total USDC was within Circle's platform." — Jeremy Fox-Geen (CFO)
Prioritizing Arc and subscription revenue
Q (James Yaro · Goldman Sachs): He asked why Circle prioritized Arc over other blockchains and how that decision will change subscription and services revenue going forward.
A: Jeremy said Arc is a massive strategic opportunity, potentially bigger than USDC, and will drive transaction and infrastructure revenue over 3 to 5 years. Jeremy Fox-Geen said subscription and services revenue comes from partnerships that bring USDC and Circle infrastructure to other blockchains, with both upfront and recurring fees, and that these deals are lumpy due to upfront components; look to their other revenue guide for the year's implications.
"The subscription and services revenue line that you asked for, as we've said, is based on the partnerships that we build with other blockchains to bring USDC and the rest of Circle's infrastructure stack to those blockchains." — Jeremy Fox-Geen (CFO)
Agentic product roadmap and timing
Q (Owen Lau · Clear Street): He asked for more color on the agentic product road map for the second half and when agentic commerce revenue will become more material.
A: Jeremy said they will publish more detail soon and outlined initial products: agent wallets, policies/guardrails, open standard payments and a curated agent marketplace now with 900 services. He said adoption is growing organically (for example Cloudflare announced agentic wallets with x402 and USDC support), and over time agentic use should increase stablecoin holdings, transaction velocity, Arc usage and revenue.
"In fact, just yesterday, Cloudflare had a big announcement, they're making agentic wallets with x402 and USDC support available as a core part of their offering." — Jeremy Allaire (CEO·CHAIR)
Distribution and transaction costs on Circle platform
Q (Kenneth Worthington · JPMorgan): He asked whether Circle-specific costs for USDC on-platform fell from 1Q to 2Q, how the mix changed including CPN, and how mix affects distribution costs to win on-platform USDC.
A: Jeremy Fox-Geen said they do not disclose margin and mix at that level within the platform or across USDC. He added there are many puts and takes across pockets of highly incentivized USDC and large areas with little incentive, making quarter-to-quarter margin forecasting hard, but they remain comfortable with the year-end guide after backing out the $180 million expected to be recognized revenue.
"We don't give disclosure at the level of margin and mix within our platform and within the totality of USDC." — Jeremy Fox-Geen (CFO)
x402 payments and USDC's position
Q (John Todaro · Needham): He asked whether Circle has an inherent right to win in the x402 payment stack and whether more adoption in those channels benefits Circle.
A: Jeremy said Circle was an early design partner and founding member of the x402 Foundation, and x402 is optimized for on-chain payments and settlement suited to agents who need very fast and cheap transactions. He said these factors favor USDC, cited network effects (for example, at the end of June, 70% of real-world stablecoin payment volume was USDC), and stated they feel good about their right to win in the agentic economy.
"So all of those things lend themselves extremely well to USDC and to the blockchain infrastructure that we provide and many of our partner networks also provide." — Jeremy Allaire (CEO·CHAIR)