Circle's second-quarter USDC redemptions topped mints by about $4 billion, even as circulation still grew 19% year over year. Reserve income rose despite a lower yield, and Circle doubled the midpoint of its full-year other-revenue outlook on undisclosed proceeds from its ARC Token presale.
Gross USDC redemptions reached $87 billion against $83 billion in mints in the second quarter, leaving redemptions about $4 billion ahead of new issuance.
Circle issues the stablecoin through Circle Mint. Minting turns fiat into USDC there, and redemption turns USDC back into fiat, according to Circle's regulatory filing. The $4 billion gap describes customer flow activity, separate from reserve adequacy.
Circulation still climbs despite the flow gap
Quarter-end USDC circulation stood at $73.3 billion against a $76.5 billion quarterly average. It remained 19% higher than a year earlier.
Circle's reserve yield fell 66 basis points year over year to 3.5%. A larger average USDC balance absorbed the rate hit, lifting reserve income 5% to $667.7 million.
Other revenue outlook doubles on the ARC Token presale
Other revenue stayed small next to reserve income, but it climbed 41% year over year to about $34 million, which Circle credited to growth in subscription and services revenue.
Circle raised its full-year other-revenue guidance to $310 million to $330 million. That is up from the $150 million to $170 million range issued in May. The revised range includes recognized revenue from the ARC Token presale, though Circle did not break out that contribution.
Arc, Circle's blockchain network, has raised about $242.25 million in estimated proceeds across two token closings — roughly $222 million from the first and $20.25 million from the second. That figure differs from recognized revenue, and the purchase agreements carry repayment rights under specified circumstances.
Circle scheduled Arc's public mainnet launch for Sept. 16 — a date the earnings release keeps separate from token-revenue recognition.
Source: Circle
Trading involves risk.
Risk Disclaimer
