- Circle launches Arc, a new blockchain built for enterprise stablecoin use.
- USDC circulation jumps 90% year-over-year, hitting $65.2B in August.
- Strong revenue growth comes despite IPO-related losses.
Circle has introduced Arc, an open Layer-1 blockchain aimed at handling large-scale payments, foreign exchange, and capital markets transactions.
Built to work with the Ethereum Virtual Machine, Arc uses USDC as its native gas token. The network is designed with features like a stablecoin FX engine, fast settlement in under a second, and privacy options suited for institutional use.
Arc will be fully integrated into the network’s existing platform and will remain compatible with other partner blockchains. Its public testnet is expected to launch this fall.
The release builds on the momentum from the Circle Payments Network, launched in May, which already has more than 100 financial institutions lined up.
Partnerships with major names such as Binance, Corpay, FIS, Fiserv, and OKX are expanding the network’s role in both the crypto and traditional finance sectors.
Also Read: Circle’s USDC Now Live on XRPL: Instant Stablecoin Access Without Bridging
Q2 Results Show Strong USDC Growth
During the second quarter of the 2025 fiscal year, USDC in circulation hit $61.3 billion, up 90% from the comparable quarter of the previous year. As of August 10, it was up another 6.4% to $65.2 billion.
Total revenue and reserve income rose 53% to $658 million, and adjusted EBITDA rose 52% to $126 million, boosted by rising demand for USDC.
The company finished a $1.2 billion IPO in June by offering 19.9 million new shares at $31 apiece and collecting $583 million after underwriting commissions.
However, the listing led to significant non-cash expenses, including $424 million in stock-based compensation and a $167 million increase in convertible debt value due to a higher share price.
These charges gave rise to a net loss of $482 million during the quarter. Despite this, reserve income increased 50% compared to the previous year, and other sources of revenue increased by more than 250%.
GENIUS Act Boosts Circle’s Compliance-Driven Stablecoin Strategy
The recently enacted GENIUS Act created a federal regulatory regime for payment stablecoins, which was consistent with Circle’s compliance-oriented approach.
In July, the firm rolled out Circle Gateway on testnet, and this enables cross-chain liquidity instantly without bridging or even prepaid funds.
Commercial adoption continues to grow. Binance deepened its integration with Circle technology and introduced USYC for institutional trading collateral. Corpay connected its global FX and card network with USDC for round-the-clock settlement.
FIS integrated the network’s infrastructure into its Money Movement Hub to enable faster domestic and cross-border payments. OKX started providing direct USD-to-USDC conversions to its 60 million global users.
Also Read: Circle Plans Deployment of Native USDC and CCTP v2 on Hyperliquid
