Circle to Launch Stablecoin-Focused Blockchain Arc

Circle, the issuer of USDC, announced the launch of its own layer-one network, Arc. This information was revealed in the financial report for the second quarter of 2025.

The blockchain is focused on stablecoin-based finance: payments, currency exchange, and capital markets. The network is EVM-compatible, with USDC serving as the native token for gas payments.

Arc’s other features include a built-in stablecoin exchange mechanism, transaction finalization in less than a second, and optional privacy settings.

According to Circle CEO Jeremy Allaire, the launch of Arc is a defining moment in creating a “comprehensive platform for the internet financial system.” The company emphasized that Arc will become part of the Circle ecosystem, but support for dozens of other partner blockchains will continue.

The public testnet launch of Arc is scheduled for this autumn.

Financial Performance

In the second quarter, the company reported a net loss of $482 million. This figure was affected by one-time non-cash expenses, related to the IPO, totaling $591 million. Of these, $424 million were stock-based compensations for employees, and $167 million were due to the revaluation of convertible debt following a rise in share prices.

Meanwhile, Circle’s key operating metrics showed growth. Total revenue increased by 53% year-on-year, reaching $658 million. Adjusted EBITDA rose by 52%, to $126 million.

The capitalization of the USDC stablecoin grew by 90% over the year, amounting to $61.3 billion at the end of the quarter. As of August 10, the figure reached $65.2 billion.

Circle also announced the launch of the Circle Payments Network (CPN) and new partnerships with Binance, FIS, Fiserv, and OKX.

“Circle’s successful IPO in June was a turning point not only for our company but also for the broader adoption of stablecoins. We are seeing growing interest in creating stablecoin-based solutions and partnering with Circle,” Allaire stated.

The report also mentions the signing of the GENIUS Act in the US, which establishes federal rules for payment stablecoins. Circle believes the law will strengthen its position as a regulated issuer.

In June, Circle added support for USDC in the World Chain and XRP Ledger networks.

In the same month, the e-commerce platform Shopify implemented the option to pay in USDC.