Blockchain

Arc Blockchain Launch Plans Drop as Circle Posts Strong Q2 Gains

1 week ago
Bitcoin Ethereum News

TLDR:

  • Arc will run as an EVM-compatible Layer-1 with USDC as its native gas token.
  • USDC circulation jumped 90% year-over-year to $61.3B, hitting $65.2B by August 10, 2025.
  • Circle Q2 revenue rose 53% to $658M, with adjusted EBITDA up 52% to $126M.
  • Arc features include sub-second settlement, stablecoin FX, and opt-in privacy controls.

Circle is going all-in on stablecoin infrastructure. The USDC issuer has revealed Arc, a Layer-1 blockchain aimed squarely at payments, foreign exchange, and capital markets. The move comes as Circle reports a quarter of rapid stablecoin growth and rising revenue. 

While IPO costs pulled net results into the red, underlying performance remained strong. Arc is set to become a new pillar in Circle’s push to make USDC more central to global finance.

Arc Blockchain Launch Marks a New Phase for Circle

Circle confirmed plans to roll out Arc, a new Layer-1 blockchain designed for enterprise-grade stablecoin transactions, later this year. 

The company said Arc will be compatible with the Ethereum Virtual Machine and integrated with its existing platform, while also being interoperable with dozens of other blockchains it supports. Public testnet is scheduled for this fall, with USDC serving as the native gas token, allowing transaction fees to be paid directly in the stablecoin.

Arc will include a stablecoin foreign exchange engine, sub-second settlement speeds, and optional privacy settings for participants. Circle CEO Jeremy Allaire described the launch as a defining moment for the firm, noting that interest in building on stablecoins is accelerating across multiple sectors of finance. 

The move positions Circle alongside other stablecoin issuers developing their own networks, such as Tether, which has supported projects like Stable and Plasma.

By owning its own chain, Circle gains more control over performance, compliance tools, and integration features. This could make Arc a preferred option for institutions seeking predictable settlement in stablecoins. The project also reflects Circle’s long-term bet that stablecoins will serve as a base layer for payments infrastructure worldwide.

Q2 Results Show Strong USDC and Revenue Growth

Circle’s Q2 2025 report showed USDC in circulation climbing 90% year-over-year to $61.3 billion by quarter’s end, reaching $65.2 billion by August 10. 

Revenue and reserve income jumped 53% to $658 million, while adjusted EBITDA rose 52% to $126 million. These gains came despite a 103-basis-point drop in the average return rate on reserves.

The company’s RLDC came in at $251 million, up 38% year-over-year, with a 38% margin. Subscriptions and services contributed $24 million, a 252% rise over the prior year. Circle also reported 28% stablecoin market share, nearly six points higher than last year, and a 68% jump in meaningful wallets to 5.7 million.

However, the bottom line reflected a net loss of $482 million, largely due to $424 million in stock-based compensation and $167 million in fair-value changes linked to IPO-related convertible debt. 

Circle said these were non-cash items tied to its market debut and not reflective of operational performance. Operating expenses reached $577 million in the quarter, driven by IPO costs and continued investment in infrastructure and regulatory readiness.

The company reiterated its expectation of 40% compound annual growth in USDC circulation through the cycle. It also projects $75–85 million in “other revenue” for the year, with RLDC margins in the 36–38% range. 

With Arc on the horizon, Circle is positioning itself to capture a larger share of the stablecoin economy, both on-chain and off.

 

The post Arc Blockchain Launch Plans Drop as Circle Posts Strong Q2 Gains appeared first on Blockonomi.

Source: https://blockonomi.com/arc-blockchain-launch-plans-drop-as-circle-posts-strong-q2-gains/