Circle is exploring the launch of a new native token for its recently introduced Arc blockchain network, a strategic move announced amid an impressive surge in its financial performance and the growing dominance of its USDC stablecoin.
The potential token aims to boost network participation, align stakeholder interests, and support Arc’s long-term growth and eventual decentralization.
Arc, a Layer 1 blockchain compatible with the Ethereum Virtual Machine (EVM), launched its public testnet on October 28. It is specifically designed for enterprises, focusing on programmable finance solutions.
The announcement of the token exploration coincided with Circle’s third-quarter 2025 financial results, which reported robust growth. Total revenue and reserve income reached $740 million, marking a 66% increase year-over-year.
Net income for the quarter soared by 202% to $214 million. This was primarily driven by a 60% increase in reserve income, which hit $711 million, fueled by a 97% rise in average USDC circulation to $67.8 billion.
Jeremy Allaire, CEO of Circle, emphasized the strategic importance of the initiative, stating that a native token “could foster network participation to drive adoption, further align the interests of Arc stakeholders, and support the long-term growth and success of the Arc network.”
Arc has quickly attracted significant attention from over 100 prominent entities across traditional finance and crypto, including major players like Goldman Sachs, BlackRock, and Visa. Its focus areas include capital markets, banking, payments, and digital assets.
Initially, Arc’s gas fees were planned to utilize USDC and other stablecoins. However, the introduction of a native token could facilitate a transition towards a decentralized governance model featuring geographically distributed validators.
Further financial indicators underscore Circle’s strength, with adjusted EBITDA climbing 78% to $166 million. The company also raised its 2025 “other revenue” outlook to between $90 million and $100 million, up from its prior forecast of $75 million to $85 million.
The development of Arc aligns with a broader trend of institutional involvement in application-specific blockchains. The network already supports innovative projects, such as the first South Korean won-backed stablecoin (KRW1) from BDACS.
Circle’s payment network has expanded to eight countries, with 29 financial institutions currently enrolled and 500 more in the process. Additionally, Circle’s tokenized money market fund, USYC, managed approximately $1 billion in assets by November 8.
Analysts at Bernstein project that the supply of USDC could triple by the end of 2027, potentially capturing about one-third of the global stablecoin market. This growth is expected to be spurred by regulatory clarity and ongoing institutional adoption.