Circle posts $865M Q3 revenue as USDC becomes the first stablecoin under direct EBA supervision on November 12

Circle reported $865 million in Q3 2026 revenue and reserve income, up 17%, with average USDC in circulation of $73.3 billion — days before the European Banking Authority takes over supervision of USDC as the EU's first 'significant' e-money token under MiCA on November 12.

Circle’s third quarter tells two stories at once: a stablecoin business that keeps growing even as the interest it earns on reserves shrinks, and a regulatory milestone that no other issuer has reached. On November 12, 2026, the European Banking Authority (EBA) takes over direct supervision of USDC as the first “significant” e-money token under MiCA — a week after Circle reported $865 million in quarterly revenue.

The numbers

According to AMBCrypto, citing Circle’s SEC filing of November 5, total revenue and reserve income for Q3 2026 reached $865 million, up 17% year on year. The mix is shifting, though. Reserve income — the interest Circle earns on the Treasuries and cash backing USDC — fell 8% to $658 million, as the return on reserves dropped to 3.5%, 61 basis points lower than a year earlier. The gap was filled by “other revenue” of $207 million, of which $182 million came from the presale of the token for Arc, Circle’s own layer-1 blockchain, which launched its public mainnet on September 16.

Usage kept climbing: average USDC in circulation was $73.3 billion, up 8%, and on-chain transaction volume rose 49% to $13.9 trillion for the quarter. Circle also disclosed a 5% workforce reduction and about $9.1 million in restructuring costs, per The Crypto Basic. CRCL shares were trading at $76.12 ahead of the report, AMBCrypto noted.

Deals in the quarter

The filing also lists a busy deal sheet: a definitive agreement to acquire Singapore-based payments firm Tazapay, expected to close in 2027 subject to approvals; a $100 million equity investment by Binance alongside a renewed partnership to promote USDC; Visa moving its USDC-based prefunding product from pilot to commercial deployment; and Samsung Wallet adding USDC-based international payments for eligible US users.

USDC was also in the headlines for a less welcome reason. After the October 29 Binance breach, Circle froze roughly $823 million in USDC linked to the stolen funds, alongside about $971 million in USDT frozen by Tether, per Crypto Briefing — a reminder that issuer freeze powers are now a core part of how large thefts are contained.

What changes in Europe on November 12

The regulatory story is arguably bigger. On October 14, the EBA announced that USDC, issued in the EU by Circle Internet Financial Europe SAS, is the first of 45 notified e-money tokens to meet MiCA’s “significant” threshold. From November 12, 2026, the EBA takes over supervision of the issuer’s own funds, reserve of assets, liquidity, and recovery and redemption plans, while France’s ACPR keeps oversight of governance, qualifying holdings, outsourcing and conflicts of interest, according to The Block. The EBA will reassess the designation annually.

For holders, nothing changes about what USDC is or how it redeems: the designation adds a layer of EU-level prudential scrutiny rather than restricting the token. For the market, it is the first live test of MiCA’s two-tier regime for stablecoins — the one that was designed precisely for tokens large enough to matter for financial stability. Our explainer on how stablecoin regulation works walks through the reserve and redemption requirements the EBA will now be enforcing directly, and our report on the finalised MiCA stablecoin rules covers how the regime took shape.

Reading the two stories together

Circle’s reserve income is falling because rates are falling — a structural pressure on every fiat-backed stablecoin issuer. Its answer is to grow circulation, build infrastructure (Arc, Tazapay, Visa and Samsung integrations) and lean into regulation as a moat: being the only “significant” EMT in Europe is a compliance burden, but also a credential that competitors without an EU authorisation cannot match. Exchanges operating in the EEA have already been pruning non-compliant dollar tokens; USDC’s new status makes it the default beneficiary of that pruning. For a country-by-country view of where stablecoins can legally be offered, see our guide to crypto regulation by jurisdiction.

The bottom line

Circle grew revenue 17% to $865 million in Q3 even as its core reserve income shrank 8%, with circulation and transaction volume still rising. The more durable development is in Brussels and Paris: from November 12, USDC becomes the first stablecoin whose reserves and liquidity are supervised directly by an EU authority. That is a cost for Circle and a signal for everyone else — MiCA’s heaviest tier is no longer theoretical.

News summary based on the reporting and official release cited above, current as of November 6, 2026. Financial figures reflect Circle’s reported results as relayed by the cited outlets; verify against Circle’s SEC filings and the EBA’s publications before acting. For general information only; not legal or financial advice.