Circle shares opened with a 10% gain before giving up those gains and trading about 3% lower in premarket activity after the stablecoin issuer reported second-quarter results that surpassed earnings expectations but fell short on revenue. The company also highlighted increasing institutional adoption of its Arc blockchain ecosystem.

Shares of Circle Internet (CRCL) slipped nearly 3% ahead of Wednesday’s trading session after the company released its Q2 earnings report. While profits exceeded analyst forecasts, revenue results came in slightly below Wall Street expectations.

The company reported adjusted earnings of $0.18 per share, beating the projected $0.16. Revenue and reserve income rose 7% from a year earlier to $701 million, missing the $712 million analyst estimate. Circle posted $48 million in net income from continuing operations, above the expected $43 million, while adjusted EBITDA grew 8% to $143 million.

Circle’s USDC stablecoin saw continued growth throughout the quarter, with circulating supply reaching $73.3 billion at the end of June, up 19% year over year. However, the figure remained below its 2026 record of nearly $80 billion. Total on-chain transaction volume climbed 151% to $14.8 trillion.

CEO Jeremy Allaire said Circle’s latest results were influenced by interest-rate conditions and reduced momentum in the crypto market. Despite the broader slowdown, he pointed to accelerating institutional demand, saying companies such as BlackRock, BNY, and Standard Chartered are expanding their USDC usage rather than merely exploring the technology.

The earnings update also shed more light on Arc, Circle’s institutional-focused layer-1 blockchain. The company said Arc’s public mainnet is scheduled to launch on September 16.

Circle revealed that more than 100 institutional participants and ecosystem developers are currently creating applications on Arc. The blockchain’s first validator group includes major financial institutions and companies such as BlackRock, DTCC, ICE, Mastercard, Visa, Standard Chartered, Galaxy, and MoneyGram.

BlackRock is expected to deploy its BUIDL tokenized U.S. Treasury fund on Arc, while DTCC is developing infrastructure aimed at enabling tokenized securities across its settlement network.

These initiatives reflect Circle’s broader ambition to establish Arc as a core platform for tokenized assets, institutional settlements, and blockchain-powered financial services. As real-world asset tokenization gains momentum, financial institutions are increasingly adopting blockchain solutions for digital funds, stablecoin transactions, and collateral management.

Circle also reported strong progress for its Circle Payments Network (CPN), which generated $14.7 billion in annualized transaction volume over the past 30 days. The network’s volume increased 76% from the previous quarter, with 175 financial institutions now participating.

The company recently received approval from the U.S. Office of the Comptroller of the Currency (OCC) to create Circle National Trust, allowing it to operate as a stablecoin issuer under a federally regulated trust bank charter.