--- title: "The costs of Circle, Coinbase, and channel distribution" type: "News" locale: "en" url: "https://longbridge.com/en/news/299322762.md" description: "Circle reported Q2 2026 revenue of $701.3 million and operating profit of $34.4 million, though high distribution costs of $410.4 million and declining reserve yields offset USDC supply growth. Concurrently, Circle launched its Arc mainnet on September 16, an internet-oriented economic operating system supported by BitGo and Socure. Despite these developments, analyst concerns persist regarding valuation, and regulatory uncertainties continue to impact crypto markets." datetime: "2026-09-17T12:42:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299322762.md) - [en](https://longbridge.com/en/news/299322762.md) - [zh-HK](https://longbridge.com/zh-HK/news/299322762.md) generator: "portal-rs" --- # The costs of Circle, Coinbase, and channel distribution Author: insights4vc Source: Substack Translation: Shan Ouba, Jinse Finance Even without examining any blockchain transactions, Circle's core financial problems are already clear. In the second quarter of 2026, the company achieved revenue and reserve income of $701.3 million, paid distribution and transaction costs of $410.4 million, and recorded an operating profit of $34.4 million. The average circulating supply of USDC increased significantly year-over-year, but the reserve yield declined, offsetting most of the resulting increase in gross revenue. Before deducting operating expenses, the revenue taken by distribution partners still exceeded the portion retained by Circle itself. As of the information cutoff date, the documentation is not fully synchronized: although the mainnet has been publicly launched, some developer materials still say that only the testnet is available. The specific announcement released on September 16 can confirm the launch date, but the operations team should still directly verify the production endpoints, contract addresses and supported functions before implementation. Inconsistencies between documents limit the credibility of readers inferring deployed mainnet behavior from a reference page. References 1. 2025 Form 10-K, including audited consolidated accounts and distribution agreements. Circle Internet Group / U.S. Securities and Exchange Commission (SEC), March 9, 2026. 2. Form 10-Q for the quarter ended June 30, 2026, with key details in Notes 10-12, 15-17, 23 and Management Discussion & Analysis (MD&A). Circle Internet Group / SEC, August 5, 2026. 3. Circle Releases Second Quarter 2026 Results. Circle Internet Group, August 5, 2026. 4. Second Quarter 2026 Earnings Presentation, including operating metrics and financial reconciliation statements. Circle Internet Group, August 5, 2026. 5. Second Quarter 2026 Earnings Call Transcript. Circle Internet Group / S&P Global Market Intelligence, August 5, 2026. 6. USDC Terms. Circle, updated December 12, 2025. 7. USDC Transparency and Reserves Report; USDC Reserves Attestation Report, July 2026. Circle / Deloitte & Touche. Transparency page accessed September 17, 2026; Attestation report dated August 27, 2026. 8. GENIUS Act Rule: Notice of Proposed Rulemaking, Announcement 2026-3. Office of the Comptroller of the Currency, February 25, 2026. 9. Circle Becomes the First Global Stablecoin Issuer to Comply with the EU's Landmark Crypto Regulation MiCA; MiCA Article 149, Entry into Force and Application. Circle; European Securities and Markets Authority. Circle's announcement dated July 1, 2024; EU Regulation (EU) 2023/1114 dated May 31, 2023, accessed September 17, 2026. 10. Quotes and closing timestamps for Circle Internet Group Inc (NYSE: CRCL). Google Finance. Closing price for the regular trading session on September 16, 2026; accessed September 17, 2026. 11. "Circle's blockbuster IPO paves the way for other crypto companies to go public." Reuters, June 5, 2025. 12. Analysts say Circle's stock price should be less than half its current level. MarketWatch, July 8, 2025. 13. Circle obtains partial banking license in the United States. Financial Times, July 10, 2026. 14. Less-than-expected revenue outweighs better-than-expected quarterly profit, causing Circle's stock price to fall. Reuters, August 5, 2026. 15. The US Senate fails to advance regulatory bill, causing Bitcoin and crypto stocks to continue to fall. Reuters, September 15, 2026. 16. "The Federal Reserve Releases a Statement from the Federal Open Market Committee." Federal Reserve Board of Governors, September 16, 2026. 17. "Circle Launches Arc Mainnet: An Internet-Oriented Economic Operating System." Circle, September 16, 2026. 18. "Arc Mainnet Now Live: An Internet-Oriented Economic Operating System." Arc, September 16, 2026. 19. Circle Releases Q2 2025 Results (including Arc announcement); Circle Launches Arc Public Testnet. Circle, released on August 12 and October 28, 2025 respectively. 20. System Overview; Gas & Fees; Developer Documentation Index; Arc Explorer (its statistics cannot be retrieved repeatedly). Arc. Undateable online resource; accessed on September 17, 2026. 21. ARC: Native Asset of the Internet Economic Operating System White Paper; ARC White Paper Token Status Disclosure; ARC White Paper Introduction. Arc / Circle. The white paper was released in May 2026; the introductory article was published on May 11, 2026; the token page was accessed on September 17, 2026. 22. "Circle Announces Arc Founding Validator Lineup and Major Integrations, Mainnet Launches on September 16." Circle, August 5, 2026. 23. "Arc Mainnet Launches, BitGo Fully Supports Wallets and Custody from Day One." BitGo, September 16, 2026. 24. Arc and Socure's Day One Launch Collaboration Announcement. Socure Official LinkedIn Account. The listing was declared during the period of its launch. Accessed on September 17, 2026; the platform displays a relative timestamp. 25. "StableFX: Institutional Grade Stablecoin Forex". Circle. No date product page; accessed on September 17, 2026. 26. "Cross-Chain Transfer Protocol". Circle Developers. No date document; accessed on September 17, 2026. 27. "Transaction Finality". Base. No date document; accessed on September 17, 2026. 28. Tempo Mainnet. Tempo, March 18, 2026. 29. Canton Network: Institutional Applications and Network Design. Canton Network. No date provided; accessed September 17, 2026. 30. Plasma Network. Plasma. No date provided; accessed September 17, 2026. 31. Stablecoin Basics. Stellar Development Foundation. No date document; accessed September 17, 2026. 32. "Visa Extends Stablecoin Settlement Capabilities to Merchant Acquiring Institutions." 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