Key Takeaways
- Circle unveiled its EVM-compatible layer-1 blockchain, Arc, built for stablecoin finance.
- Arc is designed to streamline stablecoin payments, forex, and enterprise-grade financial applications.
- The announcement came alongside Circle’s strong Q2 report, following a blockbuster IPO.
On Tuesday, Circle revealed Arc, its own Ethereum Virtual Machine (EVM)-compatible layer-1 blockchain, aimed at powering the next generation of stablecoin-based financial services.
The launch was announced in tandem with Circle’s Q2 earnings, which showed 90% year-over-year growth and a market cap of $61.3 billion for USDC by quarter’s end, marking the company’s first quarterly report since going public earlier this year.
Circle Unveils EVM-Compatible L1: Arc
Arc is Circle’s first in-house blockchain — an enterprise-grade L1 platform tailored for stablecoin finance, forex markets, and instant payment applications.
USDC will serve as the native gas token, with the network offering sub-second settlements, opt-in privacy, and an integrated stablecoin FX engine.
Arc is expected to launch later this year and will be fully interoperable with the hundreds of partner blockchains Circle already supports.
Circle says Arc will be deeply integrated into its existing services, providing financial institutions with a purpose-built infrastructure for regulated, high-speed, stablecoin transactions.
Q2 2025: A Breakout Quarter for Circle
The second quarter of 2025 marked a milestone for Circle.
Fresh off its IPO, the company’s stock soared more than ninefolds from its $31 debut to an all-time high of $263, before cooling to $173.
USDC circulation surged 90% year over year to $61.3 billion by the end of Q2, climbing another 6.4% to $65.2 billion by August 10.
Circle’s regulatory positioning remains a key advantage over its biggest rival, Tether.
While Tether has faced Markets in Crypto-Assets Regulation (MICA)-related compliance hurdles in the EU, Circle is fully MiCA-approved and holds multiple U.S. operational licenses.
Revenue and reserve income rose 53% YoY to $658 million, powered by an 86% jump in average USDC circulation.
The company did report a $482 million net loss, tied to $591 million in non-cash charges from its June IPO.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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