Circle Q1 Revenue Jumps 20% as Company Raises $222 Million for Arc Blockchain

Circle posted strong first quarter results for 2026, reporting $694 million in total revenue and reserve income, representing a 20% increase year-over-year. The growth reflects rising adoption of digital dollar payments and increased activity across blockchain-based financial systems.

The company said USDC circulation reached $77 billion during Q1, up 28% compared to the same period last year. At the same time, on-chain transaction volume surged to $21.5 trillion, marking a sharp 263% annual increase, highlighting growing demand for blockchain-powered payments and settlements.

Circle described the results as evidence of a larger transformation taking place in internet finance, with digital currencies increasingly being used for global transfers, programmable payments and emerging AI-driven economies.

Circle Raises $222 Million for Arc Blockchain Expansion

Alongside its earnings update, Circle announced a $222 million ARC token presale at a $3 billion fully diluted valuation to support the expansion of its Arc blockchain infrastructure.

The funding round was led by a16z crypto, with participation from major institutions including BlackRock, Apollo, Intercontinental Exchange (ICE), and SBI Group.

Arc Blockchain Targets Institutional and AI-Based Finance

Circle said the Arc blockchain is designed to provide infrastructure for institutional finance while also supporting AI-native economic activity. The company believes blockchain networks will increasingly power automated transactions between digital agents, helping create a more programmable financial system for the internet.

As demand for stablecoins and tokenized finance grows, Circle is positioning Arc as part of the next phase of digital financial infrastructure.