# Stablecoin growth, Circle regulatory expansion and Arc plans

> Live situation record from CLSTR: https://clstr.news/situations/stablecoin-ecosystem-accelerates-with-new-funding-market-projections-and-expanded-payment-infrastruc
> Updated: 2026-08-18T16:32:32.000Z. Sources: 145. Developments: 55.

Stablecoin transaction volume hit a new record of $1.79 trillion in June 2026, with USDC and USDT dominating activity. While the IMF warned of currency run risks in fixed-rate economies, Circle significantly expanded its regulatory footprint. Following an OCC national trust bank charter, the New York Department of Financial Services (NYDFS) granted Circle a limited-purpose trust charter for its subsidiary, Circle New York Trust. This creates a dual state-federal framework allowing for fiduciary, custodial, and asset-management services, though the entity cannot accept consumer deposits or make loans.

In its Q2 2026 earnings, Circle reported $701 million in revenue, a 7% year-over-year increase that slightly missed Wall Street estimates. Despite the miss, USDC circulation rose 19% to $73.3 billion, and on-chain transaction volume surged 151% to $14.8 trillion. The company also announced plans to launch its Arc Layer-1 blockchain on September 16, 2026, with a validator cohort including BlackRock, Visa, and Mastercard.

Strategic partnerships and infrastructure also evolved. Circle renewed its USDC partnership with Coinbase through 2029, incorporating new notice-and-cure remedies regarding product and reseller support. Additionally, Circle Mint expanded its utility by adding support for eight local-currency on-and-off-ramps, including the Brazilian real, British pound, and Euro. Meanwhile, Coinbase implemented deposit and withdrawal cutoffs for USDC via its custodial route on the Noble network, prompting Circle to work with Noble and Cosmos teams on routing solutions.

## Claims

- USDC circulation at quarter‑end was $73.3 billion, a 19 % increase year‑over‑year. (corroborated by 10 sources)
- Circle reported Q2 2026 total revenue of $701 million, up 7 % year‑over‑year. (corroborated by 9 sources)
- The $701 million revenue missed Wall Street consensus estimates of roughly $713 million. (corroborated by 9 sources)
- Net income from continuing operations was $48 million, up $530 million year‑over‑year. (corroborated by 9 sources)
- On‑chain USDC transaction volume was $14.8 trillion, up 151 % year‑over‑year. (corroborated by 9 sources)
- Reserve income was $668 million, up 5 % year‑over‑year, driven by a 25 % increase in average USDC circulation. (corroborated by 9 sources)
- The reserve return rate fell 66 basis points to 3.5 % year‑over‑year. (corroborated by 9 sources)
- Circle Internet Group received a limited‑purpose trust charter from the New York Department of Financial Services for Circle New York Trust. (corroborated by 8 sources)
- The NYDFS charter permits Circle to offer fiduciary, custody and asset‑management services for digital assets in New York. (corroborated by 8 sources)
- Circle previously received OCC approval to establish a national trust bank for digital‑asset custody. (corroborated by 8 sources)
- Jeremy Allaire said obtaining the New York trust charter had been a longstanding objective for Circle. (corroborated by 7 sources)
- Circle was the first company to receive a BitLicense from NYDFS in 2015. (corroborated by 7 sources)

## Timeline

### 2026-08-18: Circle renews Coinbase agreement and expands USDC local currency support

Circle renews its USDC agreement with Coinbase, expands Circle Mint to support eight local currencies, and manages the transition of USDC deposits on the Noble network following Coinbase's custodial cutoff.

5 sources. https://clstr.news/cluster/circle-renews-coinbase-agreement-and-expands-usdc-local-currency-support

### 2026-08-05: Circle posts Q2 2026 earnings with USDC growth, revenue miss and Arc launch plans

Circle posted Q2 2026 revenue of $701 M (up 7 %) but missed estimates, net income $48 M, USDC circulation $73.3 B (+19 %), on‑chain volume $14.8 T (+151 %). It renewed its Coinbase deal, ruled out dividends, h‑

18 sources. https://clstr.news/cluster/circle-posts-7-revenue-rise-as-usdc-circulation-jumps-19-to-733-bn

### 2026-08-02: Circle Secures New York Trust Charter, Expanding USDC Regulatory Framework

Circle obtained a New York limited‑purpose trust charter, adding state oversight to its USDC stablecoin and complementing its recent OCC national trust approval.

3 sources. https://clstr.news/cluster/circle-secures-new-york-trust-charter-expanding-usdc-regulatory-framework

### 2026-07-31: Circle secures New York trust charter for USDC stablecoin

Circle received a limited‑purpose trust charter from NYDFS, complementing its OCC‑approved national trust bank and strengthening regulatory oversight of the USDC stablecoin.

15 sources. https://clstr.news/cluster/circle-secures-new-york-limited-purpose-trust-charter-for-usdc

### 2026-07-23: Circle mints 250M USDC amid broader net outflows of stablecoins

Circle minted 250 M USDC; over the past month USDC redemptions outpaced issuance by $1.6 B, lowering supply to ~73 B while reserves stay fully backed.

5 sources. https://clstr.news/cluster/circle-mints-250m-usdc-amid-broader-net-outflows-of-stablecoins

### 2026-07-19: Circle President Defends USDC Strategy Amid Sharp Stock Drop

Circle's stock plunged 76% as new stablecoin Open USD entered the market; President Heath Tarbert defended USDC's network effects, a federal banking charter, and the Arc blockchain to reassure investors.

6 sources. https://clstr.news/cluster/circle-president-defends-usdc-strategy-amid-sharp-stock-drop

### 2026-07-18: U.S. Fed advances stablecoin rules as private USDT swaps debut on TRON

The U.S. Fed moves to finalize stablecoin regulations, while Symbiosis Finance introduces private USDT swaps on TRON, adding a privacy layer and raising regulatory concerns.

2 sources. https://clstr.news/cluster/us-fed-advances-stablecoin-rules-as-private-usdt-swaps-debut-on-tron

### 2026-07-18: Stablecoins Poised to Replace Traditional Bank Accounts for Digital‑Native Users

Stablecoins may soon replace traditional bank accounts for digital‑native users, with firms like Steakhouse Financial and Nuvion building secure wallet infrastructure and forecasting massive growth.

2 sources. https://clstr.news/cluster/stablecoins-poised-to-replace-traditional-bank-accounts-for-digitalnative-users

### 2026-07-17: Circle adds USDC gateway and fiat payouts to Fireblocks platform

Circle integrates USDC gateway and fiat payouts into Fireblocks, while USDC usage hits $21.5 trillion quarterly; firms like Coinremitter offer low‑fee USDC payment gateways for merchants.

3 sources. https://clstr.news/cluster/usdc-stablecoin-expands-with-new-payment-gateway-integrations

### 2026-07-15: JPMorgan cuts Circle and Coinbase forecasts over Hyperliquid USDC deal

JPMorgan cut Circle and Coinbase earnings forecasts after Hyperliquid got 90% of USDC reserve yield, a move seen as a “prisoner’s dilemma”. Bank of America stayed bullish on Coinbase, citing the upcoming CLARTY

7 sources. https://clstr.news/cluster/coinbase-poised-for-growth-amid-clarity-act-and-perpetual-futures-approval

### 2026-07-14: IMF warns stablecoins undermine currency control in Bolivia and Nigeria

IMF papers show dollar‑linked stablecoins are becoming reference rates in Bolivia and are widely adopted in Nigeria, threatening monetary sovereignty in both countries.

2 sources. https://clstr.news/cluster/imf-warns-stablecoins-undermine-currency-control-in-bolivia-and-nigeria

### 2026-07-14: JCB Teams with Circle to Pilot Stablecoin Payments for Cross‑Border and Retail Transactions

JCB and Circle have signed an MOU to trial USDC‑based cross‑border and retail payments, starting with a proof‑of‑concept for internal fund transfers and in‑store stablecoin checkout in Japan.

5 sources. https://clstr.news/cluster/jcb-signs-mou-with-circle-to-develop-stablecoin-payment-solutions

### 2026-07-14: Stablecoins expand in cross‑border payments market

Stablecoins are rapidly adopted for cross‑border payments, cutting costs and settlement times; the market rose to US$ 300 bn, with firms like Glin highlighting programmable, 24/7 transfers and global regulatory

3 sources. https://clstr.news/cluster/stablecoins-expand-in-crossborder-payments-market

### 2026-07-13: Circle secures USDC bank charter amid market pressures and revenue‑sharing disputes

Circle wins OCC approval for a national trust bank, but faces earnings cuts from JPMorgan over a Hyperliquid revenue‑share deal and competition from the consortium‑backed Open USD, while JCB eyes USDC payments.

13 sources. https://clstr.news/cluster/circle-secures-us-national-trust-bank-license-strengthening-usdc

### 2026-07-11: Tether's Bitcoin Reserve Activity Slows After Q2, Minor Test Transfer to Binance

Tether transferred four BTC to Binance as a test move and has shown no large Bitcoin purchases since Q2, indicating a possible slowdown in its reserve‑building strategy.

3 sources. https://clstr.news/cluster/tethers-bitcoin-reserve-activity-slows-after-q2-minor-test-transfer-to-binance

### 2026-07-11: IMF warns dollar‑stablecoins could trigger currency crises in fixed‑rate economies

IMF research says dollar‑stablecoins ease dollar access but can spark coordinated currency runs in fixed‑rate economies, urging temporary transaction limits.

9 sources. https://clstr.news/cluster/stablecoins-split-into-payment-and-defi-roles-raise-fx-access-and-currencyrun-risks

### 2026-07-10: Stablecoin usage jumps as crypto payment cards surpass $10 billion in spend

Crypto payment cards top $10.6 billion in spend as stablecoin volumes surge, with Coinbase’s Base handling 62% of global transactions and forecasts that stablecoins will outpace fiat payments by 2031.

3 sources. https://clstr.news/cluster/stablecoin-usage-jumps-as-crypto-payment-cards-surpass-10-billion-in-spend

### 2026-07-10: Circle Secures OCC Approval for U.S. National Trust Bank

The U.S. OCC granted Circle final approval to launch a federally chartered national trust bank, boosting USDC credibility and sending Circle’s shares up about 5%.

35 sources. https://clstr.news/cluster/circle-gets-occ-approval-to-establish-us-national-trust-bank

### 2026-07-10: USDT supply tops $90B on TRON as Tether expands to Telegram's TON

USDT supply on TRON tops $90 billion with $4.2 trillion transfers, while Tether adds native USDT support to Telegram’s TON network, widening stablecoin use.

4 sources. https://clstr.news/cluster/usdt-supply-tops-90b-on-tron-as-tether-expands-to-telegrams-ton

### 2026-07-10: Circle sued over USDC fraud case, accused of refusing to aid victims

Circle, USDC issuer, is sued in Wisconsin for not freezing and returning 381,000 USDC stolen in a scam, sparking a wider debate on stablecoin issuers' legal responsibilities.

2 sources. https://clstr.news/cluster/circle-sued-over-usdc-fraud-case-accused-of-refusing-to-aid-victims

### 2026-07-08: Top 10 Cryptocurrencies by Market Capitalization in 2026

Bitcoin leads with a $1.26 trillion market cap, followed by Ethereum at $210.57 billion and Tether at $184.15 billion in the 2026 top‑10 cryptocurrency ranking.

2 sources. https://clstr.news/cluster/top-10-cryptocurrencies-by-market-capitalization-in-2026

### 2026-07-08: Stablecoin activity surges as transaction volume hits record $1.79 trillion

Stablecoin transaction volume surged to a record $1.79 trillion in June 2026 and powered $1.1 trillion of TradFi perpetual trading, while adoption grew in Latin America and on‑chain activity shifted to USDT and

4 sources. https://clstr.news/cluster/stablecoin-activity-surges-as-transaction-volume-hits-record-179-trillion

### 2026-07-06: June stablecoin transactions hit $1.79 trillion record

June stablecoin volume hit $1.79 trillion, USDC led with 67 % share, USDT drove payments, Tron ranked third, while shrinking supply pressures Bitcoin.

5 sources. https://clstr.news/cluster/stablecoins-hit-179-trillion-monthly-transaction-volume-in-june

### 2026-07-04: Stablecoin Transaction Volume Tops $1.79 Trillion in June, USDC Dominates Usage

Visa data shows June stablecoin volume hitting $1.79 trillion, with USDC leading, while Binance sees a $213 million USDT inflow, signaling increased liquidity.

3 sources. https://clstr.news/cluster/stablecoin-transaction-volume-tops-179-trillion-in-june-usdc-dominates-usage

### 2026-07-02: Circle CEO Jeremy Allaire on USDC competition and market outlook

Circle CEO Jeremy Allaire said USDC remains dominant but faces new competition from Open USD, a coalition‑backed stablecoin set for 2026, while noting the sector’s shift to real‑use cases and soaring volumes.

2 sources. https://clstr.news/cluster/circle-ceo-jeremy-allaire-on-usdc-competition-and-market-outlook

### 2026-06-29: BNY Mellon Launches End‑to‑End USDC Mint‑Burn Services for Institutional Clients

BNY Mellon now lets institutional clients mint, transfer, redeem and hold USDC on its custody platform, expanding stablecoin services for its $59.3 trillion client base.

4 sources. https://clstr.news/cluster/circle-partners-with-bny-as-bnb-chain-launches-free-usdc-transfers

### 2026-06-28: Polygon processes $80 billion in stablecoin transfers in May, leading all blockchains

Polygon processed about $80 billion in stablecoin volume and 198 million transactions in May 2026, topping all blockchains and pushing cumulative transfers past $2.4 trillion.

4 sources. https://clstr.news/cluster/stablecoin-market-surge-boosts-circle-coinbase-and-polygon

### 2026-06-27: Circle Internet Group shares rebound amid USDC growth and Nomura FX partnership

Circle shares rose 7% to $73.57 as USDC usage spikes and a new Nomura FX settlement deal targets Japan's massive forex market, amid ongoing regulatory focus.

2 sources. https://clstr.news/cluster/circle-internet-group-shares-rebound-amid-usdc-growth-and-nomura-fx-partnership

### 2026-06-26: Tether USDT Tops Ethereum as Second‑Largest Crypto by Market Value

USDT’s market cap rose to about $186 billion, overtaking Ethereum’s roughly $185 billion as ETH fell to $1,530. The Ethereum Foundation cut staff by 20 % and slashed its budget, while analysts cite a shift to ‑

5 sources. https://clstr.news/cluster/tether-usdt-tops-ethereum-as-secondlargest-crypto-by-market-value

### 2026-06-26: Stablecoin demand cools as Google search interest and supply contract in June 2026

June 2026 saw stablecoin Google searches drop 54% and supply shrink by $5 billion, ending a rapid growth phase; USDT0 still topped $100 billion in cross‑chain volume.

2 sources. https://clstr.news/cluster/stablecoin-demand-cools-as-google-search-interest-and-supply-contract-in-june-2026

### 2026-06-23: USDT0 Stablecoin Tops $100 B Volume as Crypto Stablecoins Hold Record US Treasury Assets

USDT0 reaches $100 B cross‑chain volume in 525 days, becoming Tether’s third‑largest holder, while stablecoins now hold $165 B in U.S. Treasury bills, surpassing several nations.

2 sources. https://clstr.news/cluster/usdt0-stablecoin-tops-100-b-volume-as-crypto-stablecoins-hold-record-us-treasury-assets

### 2026-06-18: Cryptocurrency market sees major shifts as Bitcoin falls 47% and stablecoins surge

Bitcoin fell 47% and Ethereum 55% over two years, while stablecoins like Tether grew 65% and USDC doubled; new top‑10 cryptos include TRON and Hyperliquid, and Toncoin renamed Gram.

2 sources. https://clstr.news/cluster/cryptocurrency-market-sees-major-shifts-as-bitcoin-falls-47-and-stablecoins-surge

### 2026-06-18: Binance proof of reserves shows BTC and ETH rise, USDT decline

Binance’s 43rd proof‑of‑reserves snapshot (June 1) shows user Bitcoin up 4.26% to ~630 k BTC and Ethereum up 10.17% to ~4.14 m ETH, while USDT fell 1.33% to ~34.3 bn, with reserve ratios above 100% for major资产。

2 sources. https://clstr.news/cluster/binance-proof-of-reserves-shows-btc-and-eth-rise-usdt-decline

### 2026-06-14: Binance Acts as Cross-Chain Liquidity Bridge as USDT Flows Shift From Ethereum to Tron

Binance saw $83 M daily USDT inflows on Ethereum and $101 M outflows on Tron over two weeks, with stablecoin reserves down only 1.3%, indicating institutional cross‑chain transfers and a shift toward Tron’s low

3 sources. https://clstr.news/cluster/binance-acts-as-cross-chain-liquidity-bridge-as-usdt-flows-shift-from-ethereum-to-tron

### 2026-06-11: Binance USDT Inflows Highlight Liquidity in $300B Stablecoin Market

Binance saw $272 M USDT inflow in 24 h, while the $300 B stablecoin market remains largely idle, with low transaction velocity and regulatory moves targeting passive yields.

2 sources. https://clstr.news/cluster/binance-usdt-inflows-highlight-liquidity-in-300b-stablecoin-market

### 2026-06-11: Citi launches blockchain‑based Digital Depositary Receipts for private startup shares

Citi rolls out blockchain‑based Digital Depositary Receipts, letting institutional and wealthy investors buy tokenised exposure to private‑startup equity via SIX’s Swiss blockchain platform.

2 sources. https://clstr.news/cluster/citi-launches-blockchainbased-digital-depositary-receipts-for-private-startup-shares

### 2026-06-11: Citigroup launches blockchain platform for tokenized private shares

Citigroup is rolling out a blockchain platform for wealthy and institutional investors, initially outside the US, to trade tokenized private‑company shares via Citi‑issued depositary receipts.

4 sources. https://clstr.news/cluster/citigroup-launches-blockchain-platform-for-tokenized-private-shares

### 2026-06-10: US banks to launch tokenized deposit network by 2027

Major US banks will create a blockchain‑based tokenized deposit network by 2027 to speed corporate treasury, cross‑border and programmable payments.

2 sources. https://clstr.news/cluster/us-banks-to-launch-tokenized-deposit-network-by-2027-1

### 2026-06-10: USDC Loses $141 Million as Traders Shift to USDT Stablecoin

USDC saw a $141 M net outflow, the biggest among major assets, while USDT gained $41 M, indicating traders are rotating stablecoin exposure for liquidity as Bitcoin and Ethereum flows remained near‑balanced.

2 sources. https://clstr.news/cluster/usdc-loses-141-million-as-traders-shift-to-usdt-stablecoin

### 2026-06-08: US Banks Plan Blockchain Network to Tokenize Deposits by 2027

US banks aim to launch a blockchain network for tokenised deposits by 2027 as stablecoins rise, while Bitcoin and Ethereum see slight gains and other cryptos slip, highlighting market volatility.

2 sources. https://clstr.news/cluster/us-banks-plan-blockchain-network-to-tokenize-deposits-by-2027

### 2026-06-06: US banks to launch tokenized deposit network by 2027

Major U.S. banks, led by JPMorgan and Bank of America, will build a blockchain‑based tokenized‑deposit network with The Clearing House, targeting a first‑half‑2027 launch to compete with stablecoins.

3 sources. https://clstr.news/cluster/us-banks-to-launch-tokenized-deposit-network-by-2027

### 2026-06-05: US Major Banks Plan Blockchain Tokenized Deposit Network for 2027

U.S. banks JPMorgan, Citi, Bank of America and Wells Fargo are teaming with The Clearing House to launch a blockchain network for tokenized deposits by 2027, aiming to retain liquidity amid stablecoin pressure.

2 sources. https://clstr.news/cluster/us-major-banks-plan-blockchain-tokenized-deposit-network-for-2027

### 2026-06-05: US banks plan tokenized deposit network to rival stablecoins

US banks (JPMorgan, Citi, BofA, Wells Fargo) will launch a tokenized‑deposit blockchain network in 2027 via The Clearing House to counter stablecoin competition and address the CLARITY Act.

2 sources. https://clstr.news/cluster/us-banks-plan-tokenized-deposit-network-to-rival-stablecoins

### 2026-06-04: U.S. Major Banks Set Up Tokenized Deposit Network for 2027

U.S. banks JPMorgan, BofA, Citi, Wells Fargo and peers will launch a tokenized‑deposit blockchain network via The Clearing House in early 2027 to compete with stablecoins.

5 sources. https://clstr.news/cluster/major-us-banks-to-launch-tokenized-deposit-network-by-2027

### 2026-05-31: USDT Stablecoin Market Cap Shrinks by $1.2 B in 24 Hours

USDT supply fell $1.2 B in 24 hours as a redemption wave cut market cap, indicating temporary liquidity tightening but not a structural weakness.

2 sources. https://clstr.news/cluster/usdt-stablecoin-market-cap-shrinks-by-12-b-in-24-hours

### 2026-05-31: Circle's USDC Expansion Drives Stablecoin Market Surge

Circle's USDC supply rose 28% YoY, on‑chain volume jumped 263% to $21.5 trillion, and new partnerships with Nium and Kyriba broadened use cases, boosting Circle's stock 38% and reinforcing its stablecoin lead.

2 sources. https://clstr.news/cluster/circles-usdc-expansion-drives-stablecoin-market-surge

### 2026-05-24: Tether Holds $141 B in U.S. Treasuries, Adding Stablecoin Risk to Government Debt

Tether’s $141 B Treasury holdings make it the largest non‑sovereign US debt holder, linking stablecoin growth to new systemic risk in government borrowing.

2 sources. https://clstr.news/cluster/tether-holds-141-b-in-us-treasuries-adding-stablecoin-risk-to-government-debt

### 2026-05-18: US crypto adoption hits 10% in 2025, Federal Reserve report shows

Fed data shows 10% of US adults used or invested in crypto in 2025, with 9% investing and 2% paying.

6 sources. https://clstr.news/cluster/us-crypto-adoption-hits-10-in-2025-federal-reserve-report-shows

### 2026-05-16: Stablecoin Market Caps $323.3B as Tether Holds 58% Share

Stablecoin market tops $323.3 billion, with $1.5 billion weekly inflows; Tether remains dominant at 58.7% share.

6 sources. https://clstr.news/cluster/stablecoin-market-caps-3233b-as-tether-holds-58-share

### 2026-05-15: Coinstancy launches stablecoin savings product on Polygon for mainstream users

Coinstancy rolls out a Polygon‑based stablecoin savings tool, highlighting growing mainstream use of stablecoins despite stability concerns.

2 sources. https://clstr.news/cluster/coinstancy-launches-stablecoin-savings-product-on-polygon-for-mainstream-users

### 2026-05-14: USDT Stablecoin Gains Traction in UK Online Casinos and Business Payments

USDT is becoming popular in UK online casinos and businesses for fast, low‑fee, stable payments.

3 sources. https://clstr.news/cluster/usdt-stablecoin-gains-traction-in-uk-online-casinos-and-business-payments

### 2026-05-13: Moody's Forecasts US Banks See Tokenized Finance Reaching Tipping Point

Moody's says US banks expect tokenized finance to grow slowly then hit a tipping point, with a $31.6 bn market now.

2 sources. https://clstr.news/cluster/moodys-forecasts-us-banks-see-tokenized-finance-reaching-tipping-point

### 2026-05-11: Stablecoin Payments Expand with Guaranteed-Output Swaps and Card Platforms

Stablecoin payments surge with $7.2 trillion volume, guaranteed-output swaps from 0x and new stablecoin cards rolling out globally.

2 sources. https://clstr.news/cluster/stablecoin-payments-expand-with-guaranteed-output-swaps-and-card-platforms

### 2026-05-06: Bitwise CIO predicts $4 trillion stablecoin market as tech firms pilot payments

Bitwise CIO says pilots by DoorDash, Meta and others could boost stablecoin market to $4 trillion by 2030.

6 sources. https://clstr.news/cluster/bitwise-cio-predicts-4-trillion-stablecoin-market-as-tech-firms-pilot-payments

### 2026-05-06: OpenTrade Secures $17 Million Funding to Expand Global Stablecoin Yield Platform

OpenTrade raised $17 M to broaden its stablecoin yield platform, bringing total funding over $30 M and targeting $1 B transactions by 2026.

4 sources. https://clstr.news/cluster/opentrade-secures-17-million-funding-to-expand-global-stablecoin-yield-platform

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Cite as: Stablecoin growth, Circle regulatory expansion and Arc plans. CLSTR, https://clstr.news/situations/stablecoin-ecosystem-accelerates-with-new-funding-market-projections-and-expanded-payment-infrastruc