Circle Payments Network reached $41.3 billion in annualized total payment volume in the third quarter of 2026, a 15.2-fold year-over-year expansion, the USDC issuer said in results published Nov. 4.
The network had 205 financial institutions enrolled. Circle's earnings presentation puts the annualized volume at $2.7 billion a year earlier and $14.7 billion in the second quarter of 2026. The $41.3 billion figure is a run rate, rather than the amount processed during the quarter.
The payments expansion came alongside a jump in Circle's company-wide retained revenue. But that improvement included $182 million from ARC token presales, while income from USDC reserves fell.
CPN connects financial institutions for stablecoin settlement. As The Defiant previously reported, Circle added Managed Payments in April, allowing institutions to transact in fiat while Circle handles USDC minting and burning, compliance controls and blockchain infrastructure.
Token Sales Lift Retained Revenue
Circle reported total revenue and reserve income of $865 million for the quarter, up 17% year over year. Reserve income fell 8% to $658 million as lower reserve returns outweighed growth in average USDC circulation. Other revenue reached $207 million, including the $182 million ARC presale contribution.
Distribution and transaction costs were $409 million. Including other costs, the total was $412 million, leaving $453 million before operating expenses and other items. Circle calls this revenue less distribution costs, or RLDC—a company-wide measure, not CPN profit.
Its reported RLDC margin reached 52.4%, compared with 41.2% in the second quarter. Excluding ARC token sales, however, Circle reported $271 million in RLDC and a 39.7% margin. Net income from continuing operations was $226 million, up 5% year over year.
Tazapay Would Deepen Local Payout Access
Circle also reiterated its pending acquisition of Singapore-based cross-border payments company Tazapay. The earnings presentation lists consideration of $400 million in Class A common stock.
In its Sept. 8 acquisition announcement, Circle said Tazapay brought more than $25 billion in annualized payment volume, over 60 banking and fintech partners, and local payout connections covering more than 100 markets, measured as of July 31. About 60% of Tazapay's transaction volume already involved stablecoins.
The acquisition would bring banking relationships and local payout infrastructure in-house, expanding Circle's ability to initiate payments and deliver funds to recipients across Asia-Pacific, Latin America and emerging markets. Tazapay has been a CPN design partner since 2025, according to Circle CEO Jeremy Allaire.
Circle expects the deal to close in 2027, subject to customary closing conditions and regulatory approvals, including approval from the Monetary Authority of Singapore.