# Circle paid $325m of its $668m reserve interest to Coinbase — USDC in circulation grew 19%, interest income only 5%

![Circle paid $325m of its $668m reserve interest to Coinbase — USDC in circulation grew 19%, interest income only 5%](https://aiswingx.com/static/covers/crcl-2026q2_cover.jpg?v=1790025600)

**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.

- 종목: CRCL (Circle Internet Group)
- 분기: 2026Q2 · 10-Q
- 작성: 2026-09-21 21:20 UTC
- 원문: https://aiswingx.com/p/crcl-2026q2

## 숫자 하나
Q2 reserve income $667,733k (95.2% of total income). Distribution and transaction costs $410,414k = 58.5% of total income, of which Coinbase-related costs $324.6m (46.3%). Average USDC in circulation $76,524m (+25%); reserve return rate 3.5% (4.1% a year earlier). Net income $48,214k.

## 비유 하나
(구독자 전용)

## 출처 하나
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

## 다음 분기에 볼 것
(구독자 전용)

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## What happened

Circle Internet Group (CRCL) issues the dollar stablecoin USDC and listed in June 2025.

Its Q2 2026 quarterly report (10-Q) shows revenue and reserve income of **$701,315k**, up 7% from $658,078k a year earlier. **Reserve income was $667,733k (95.2%)**; other revenue $33,582k. Distribution and transaction costs were **$410,414k**, operating expenses $254,486k, and net income **$48,214k** (a $482,100k loss a year earlier on IPO-related compensation).

The distribution-costs section of MD&A reads as follows. Under the Collaboration Agreement, Coinbase receives allocations based on USDC held on its platform and half of the remaining amount tied to ecosystem growth. **Coinbase-related distribution costs were $324.6m in Q2** ($332.3m a year earlier) — 48.6% of reserve interest and 46.3% of total income.

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(End of free preview. What the numbers mean, why it matters, company context, the next-quarter checklist and the arithmetic are available to subscribers — https://aiswingx.com/pricing)

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## FAQ

**Q. 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. Coinbase-related costs were $324.6m in Q2 ($332.3m a year earlier); the exact percentages are not disclosed. What the structure means for profit is explained in the subscriber section.

**Q. 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. Net income was $48.2m (the year-earlier quarter was a $482.1m loss from IPO-related compensation).

**Q. What if rates fall further?**

The company says most of its income depends on interest rates and circulation. A 0.1-point change in the return rate on $76.5bn of average circulation is roughly $77m of annual income (simple calculation).

**Q. 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.