Circle Internet Group (NYSE: CRCL) launched Arc, an open, layer-1, stablecoin-centric blockchain to help developers deploy smart contracts and decentralized applications across Ethereum compatible blockchains.
Announced on Tuesday, the network is designed to support enterprise-grade stablecoin payments, foreign exchange, and capital markets applications. By making Arc EVM-compatible, Circle also enables developers to migrate or build applications with minimal code changes.
Arc uses the USDC stablecoin as its native gas token, a unique choice for transaction fees. In blockchain systems, gas tokens are the currency users spend to execute transactions or run programs. Additionally, a stablecoin-centric blockchain like Arc uses a price-stable digital asset as the core medium for fees and transfers. This can reduce volatility and make cost projections easier for businesses.
The company anticipates the public testnet for Arc will launch in the fall. Once fully deployed, Circle will integrate Arc across all its services and make it interoperable with dozens of partner blockchains it already supports. Furthermore, the network’s design targets enterprises that require predictable transaction costs and regulatory-friendly infrastructure.
Circle’s announcement follows strong second-quarter results for 2025. The company recorded a 53 per cent year-over-year increase in total revenue and reserves, reaching USD$658 million in Q2. Additionally, adjusted EBITDA rose 52 per cent to USD$126 million. This growth demonstrates increasing adoption of Circle’s platform across varied industries.
However, Circle also reported a net loss of USD$482 million last quarter. This figure was largely due to non-cash charges of USD$591 million related to its initial public offering. Despite the loss, Circle’s share price rose 6.5 per cent in pre-market trading after the earnings release, reaching USD$172.01 at press time.
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Arc is a strategic move for Circle
Launched in 2013, Circle issues USDC, a leading U.S. dollar-backed stablecoin. With a market capitalization of USD$65 billion, USDC accounts for about 24 per cent of the global stablecoin market. Moreover, Circle’s emphasis on regulatory compliance and transparency has helped it secure partnerships with major financial institutions.
“I’m proud of Circle’s performance in the second quarter, our first as a public company, where we demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners,” said Jeremy Allaire, Circle’s CEO.
Arc represents a strategic move for Circle. By launching its own layer-1 blockchain, Circle gains more control over transaction efficiency, scalability, and integration. Additionally, enterprises and developers will have a purpose-built environment for stablecoin use cases. If adoption matches projections, Arc could strengthen Circle’s competitive position in the growing digital payments ecosystem.
Accordingly, the combination of Arc’s launch and Circle’s strong revenue growth marks a pivotal moment for the company. The success of the testnet and subsequent mainnet launch will be key indicators of how well Circle can translate its stablecoin dominance into broader blockchain infrastructure leadership.
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