Circle, the company behind the USDC stablecoin, has announced a bold new step to deepen its presence in the stablecoin ecosystem with the launch of its own Layer-1 blockchain, called Arc. Designed specifically to support stablecoin payments, foreign exchange (FX), and capital markets applications, Circle Arc will use USDC as its native gas token, marking a significant move to integrate the stablecoin more tightly into blockchain infrastructure.
In a press release coinciding with its Q2 financial report, Circle detailed that Arc is an open, Ethereum Virtual Machine (EVM)-compatible blockchain tailored to meet enterprise needs. The network promises features such as sub-second settlement finality, an integrated stablecoin FX engine, and optional privacy controls to appeal to institutional clients and developers alike.
We just reported our Q2 2025 earnings, our first as a publicly traded company.
USDC in circulation reached $61.3B at the end of Q2, up 90% YoY, with $5.9T in onchain volume during Q2.
Read the results here: https://t.co/a6fwiWoTNK pic.twitter.com/lgTOOTIEAq
— Circle (@circle) August 12, 2025
Circle plans to fully integrate the Arc network across its existing platforms and services, ensuring interoperability with other blockchains that Circle supports. The public testnet for Arc is slated to launch this fall, signaling the company’s readiness to broaden stablecoin use cases beyond simple transactions.
The announcement comes shortly after Circle’s successful initial public offering (IPO) in June, which raised $1.2 billion and marked a new chapter as a publicly traded company. Alongside the Arc launch, Circle highlighted the recent passage of the GENIUS Act, legislation that cements the company’s commitment to regulatory compliance — a crucial factor in the stablecoin space.
Circle’s Q2 report revealed a 90% year-over-year surge in USDC circulation, reaching $61.3 billion by the quarter’s end, and further climbing to $65.2 billion as of August 10, 2025. Total revenue and reserve income rose 53% year-over-year to $658 million, underscoring robust demand for stablecoin-based financial services.
However, the company reported a net loss of $482 million, primarily driven by $591 million in IPO-related non-cash charges. These included $424 million in stock-based compensation linked to IPO-related vesting conditions, and a $167 million increase in the fair value of convertible instruments, boosted by a rise in Circle’s stock price (CRCL).
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