Blockchain

How Circle Makes Money From USDC—and Why Reserve Income Is Not Profit

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 01/11/2026, 09:12:24 UTC.

Briefings

Circle reported a massive revenue reserve of $701.315 million in Q2 2026, yet net income remained at $48.214 million after distribution costs and taxes. This discrepancy suggests that the majority of revenue is retained as reserves rather than distributed as profit, indicating a significant difference between gross reserves and actual earnings.

Key points

• Circle's second-quarter revenue reserve totaled $701.315 million, while net income was only $48.214 million after distribution costs and taxes.
• The substantial revenue reserve implies that most of the generated funds were retained rather than distributed as profit during the period.

Context

Circle is a major US digital payment company. The Q2 2026 financial data reveals a significant gap between total reserves and net income, which is a key metric for understanding its cash flow efficiency.

Limitations

Evidence covers only Q2 2026; no prior or future data is provided. Specifics on reserve composition or tax rates remain unverified.

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