USDC transfers on public blockchains reached $13.9 trillion in the third quarter, nearly half as much again as a year earlier. Yet Circle reported that income from its reserves fell 8% to $658 million. Its November 4 earnings release measures two distinct things: the movement of tokens between wallets and the return on the assets backing them.
What moved in opposite directions
| Indicator | Q3 2026 | Year-on-year change |
|---|---|---|
| USDC transfer volume | $13.9 trillion | +49% |
| Average USDC in circulation | $73.3 billion | +8% |
| Reserve return rate | 3.5% | −0.61 percentage points |
| Reserve income | $658 million | −8% |
The same USDC can move between wallets several times during a quarter. Each transfer adds to volume without adding another dollar to the reserve. More USDC was in circulation on average, but Circle said lower yields on reserve assets more than offset that benefit.
Total revenue and reserve income nevertheless rose 17% to $865 million. Of the $207 million in other revenue, $182 million came from the ARC token presale. Growth in the combined figure is therefore not evidence of rising USDC transfer fees or improving returns on the reserve portfolio.