Circle, a major stablecoin issuer, is launching its own Layer 1 blockchain. This new network, called Arc, will focus on stablecoins. It will use USDC, Circle’s own stablecoin, for transaction fees. The company shared these plans in its second-quarter 2025 earnings report this week. Circle aims to have Arc running its test network later this year.
Arc is designed to work with the Ethereum Virtual Machine (EVM). This means it will fit well within the stablecoin market. Because it is EVM compatible, developers can easily move their existing decentralized applications, or DApps, to Arc. They won’t need to rewrite their code. This makes it simpler to build new tools for stablecoin users.
The new network is built for business use. It will handle stablecoin payments, foreign currency exchanges, and other financial market tasks. Arc promises very fast settlements, with transactions settling in less than one second. The network will link directly with Circle’s current platforms and services. It also plans to work with many other blockchains. This move is a big step for Circle. They want to create a complete system for internet finance. Public testing for Arc is set to begin between September and November. The full launch will happen after that.
Circle Reports Q2 Growth and Losses
Circle issues USDC, the second-largest stablecoin by market value. The company had a strong start on the New York Stock Exchange in June. Its shares climbed 200% from their first trading price. USDC currently holds a market value of $65 billion. This is part of a growing stablecoin market, worth about $260 billion in total.
The company saw a big increase in USDC supply. Its circulating supply grew 90% from the previous year. It reached $61.3 billion by the end of the quarter. Total revenue, including reserve earnings, went up 53% year-over-year. This brought in $658 million for the company. Jeremy Allaire, Circle’s co-founder and CEO, commented on these results. He said, “Circle’s successful public listing in June marked a crucial moment.” Allaire added, “This was important not just for our company, but for broader stablecoin adoption. It also helps the growth of the new internet financial system.”
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)
Allaire continued, “This is an extraordinary time for our company and industry.” He observed, “We see growing interest in developing stablecoins. More parties want to partner with Circle across all major financial industry sectors.” Despite this growth, Circle did report a net loss of $482 million. This loss was mostly due to $591 million in non-cash charges related to its IPO. These charges included $424 million for stock-based compensation. Another $167 million came from an increase in the value of convertible debt. This was caused by the rising stock price.
Circle is not alone in seeking a blockchain focused on fiat-pegged tokens. Tether, the company behind USDT, also has similar plans. Tether is actively involved in developing and supporting projects like Stable and Plasma.
Source: Business Wire