Circle stated that stablecoins have entered the actual US dollar financial system, claiming that about 70% of real-world stablecoin transactions are conducted through USDC.

The company's Q2 report and conference call cited Visa data: by June 2026, USDC accounted for nearly 70% of stablecoin transaction volume, a record high compared to about 36% in the same period last year. The on-chain transaction volume for the quarter was approximately $14.8 trillion, a year-on-year increase of 151%; the circulating supply at the end of the period was about $73.3 billion, a year-on-year increase of 19%. Reserve interest income was approximately $667.7 million, accounting for 95.2% of total revenue and reserve income of about $701.3 million, with transaction fees around $5.3 million. According to Coin Metrics' adjusted figures, USDC transfers from 2026 to August amounted to about $32 trillion. Circle Payments Network has 175 financial institution partners. The mainnet of its own chain, Arc, is scheduled to launch on September 16, with validators including BlackRock, Mastercard, and Visa.

The 70% figure is based on Visa's transaction volume and does not equate to reserve size or payment finality ratios. USDT's circulating supply remains larger, with different speeds and scenarios. Revenue still relies on treasury bond interest, and the explosion in transfers contributes almost no transaction fees. Alliance coins like Open USD attempt to distribute reserve earnings to participants, constituting competition to the issuer model.

The narrative of "entering the dollar system" follows regulatory and settlement access, with on-chain transfers and bank settlements remaining two separate accounts. Real-world payments increased by 84% year-on-year, which the company lists separately, needing to be distinguished from arbitrage and market-making flows.

In market mechanisms, buyers seek compliant dollar-pegged payments and institutional channels, while sellers are Circle, which holds reserves and issues USDC. The driving force is the release of share data, which is a narrative event. Funds are parked in short-term treasury bond portfolios, with transaction volumes idling on-chain. Beneficiaries are issuers who can write Visa's metrics as market share, while those under pressure are other stablecoins with high transaction volumes but narrow compliant channels, as well as Circle's valuation tied to the interest model.

Source: Public Information