What happened
Circle Internet Group (CRCL) issues the dollar stablecoin USDC and listed in June 2025.
CRCLCircle Internet Group·2026Q2 10-QPaidFiling score 62 · Moderate
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Circle paid $325m of its $668m reserve interest to Coinbase
Q2 2026 10-Q: 95% of $701m of revenue and reserve income is interest on reserves. Distribution and transaction costs of $410m (59% of income) include $324.6m under the Coinbase agreement. Average USDC in circulation rose 25% to $76.5bn, but the reserve return rate fell from 4.1% to 3.5%, so reserve income rose only 5%. Net income $48.2m
Circle Internet Group (CRCL), issuer of the USDC stablecoin, reported revenue and reserve income of $701,315k for the second quarter of 2026, up 7% from a year earlier, and net income of $48,214k. Two lines of the statement of operations in the 10-Q filed on August 5 show where the money comes from and where it goes: $667.7m of reserve interest in, $410.4m of distribution and transaction costs out.
In plain terms
Almost all of Circle's income is interest on the money it holds. More than half of that interest, though, is paid to the partners that put its coin into people's hands. What the company keeps is reduced by that much.
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62 Filing score · Moderate
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FAQ
Why does Coinbase receive so much?
The 10-Q explains that under the Collaboration Agreement Coinbase receives allocations based on USDC held on its platform plus half of the remaining ecosystem amount.
USDC grew — why is profit flat?
Average circulation rose 25%, but the reserve return rate fell from 4.1% to 3.5%, so reserve income rose only 5%, and distribution costs were essentially unchanged.
What if rates fall further?
The company says most of its income depends on interest rates and circulation.
Where can I verify these numbers?
On SEC EDGAR: Circle's Q2 2026 Form 10-Q (accession 0001876042-26-000248), the statement of operations, the MD&A key-metrics table and the distribution-costs section.
How aiSwingX™ wrote this
- We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
- Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
- An editor reviews before publication; any later change is recorded in the revision history.
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Circle Form 10-Q for Q2 2026: statement of operations (reserve income, other revenue, distribution and transaction costs), MD&A key metrics (USDC in circulation, reserve return rate, USDC on platform), 'Distribution costs' (Coinbase Collaboration Agreement, Binance), interest-rate risk · SEC EDGAR · This article is not investment advice. Disclaimer