USDC Issuer Circle Explores Native Token for Arc Network

USDC issuer Circle has revealed plans to launch a native token for its stablecoin network, Arc. The company made this revelation as it released its Q3 earnings, which showed an increase in net income year over year (YoY).

Circle Mulls Launching Arc’s Native Token

The company announced in its earnings release that it is exploring the possibility of launching a native token on the Arc network. The stablecoin issuer stated that this move could foster network participation to drive adoption and further align the interests of the network’s stakeholders. The firm added that this would support the network’s long-term growth and success.

As CoinGape reported, Circle launched the Arc Network in August this year, focusing on its use for stablecoin payments. Back then, the firm announced that USDC would serve as the network’s gas token. However, that could change with the launch of a native token.

The Arc network is currently in testnet, which went live on October 28. The USDC issuer stated that over 100 companies have participated in the network’s testnet. According to the firm, this includes leading institutions that span capital markets, banks, asset managers, and insurers.

Meanwhile, Circle also highlighted the increasing adoption of its products, including partnerships with Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, Unibanco Itaú, and Visa. As CoinGape reported back then, the stablecoin issuer launched USDC natively on Hyperliquid while also investing in HYPE, Hyperliquid’s native token.

As part of the earnings report, the company also stated that its tokenized money market fund USYC grew over 200% from June 30 to November 8, to almost $1 billion. Its payment network now supports flows across eight countries, with 29 financial institutions enrolled. Circle revealed that activity on the network has grown sharply, with annualized transaction volume of $3.4 billion based on trailing 30-day activity.

The Firm’s Financial Results

Circle reported total revenue and reserve income of $740 million, a 66% YoY increase. This also represents an increase from the $658 million that it reported in the second quarter of this year. Furthermore, it reported net income of $214 million, a 202% YoY increase.

This marks a turnaround as the stablecoin issuer had reported a net loss of $482 million in the second quarter, partly due to IPO-related non-cash charges. The adjusted EBITDA also increased to $166 million, a 78% YoY increase.

Meanwhile, the USDC in circulation reached b$73.7 billion at the end of the third quarter, a 108% increase YoY. Circle’s USDC is currently the second-largest stablecoin by market cap, behind Tether’s USDT. It is worth noting that USDC could soon see increased adoption, as Visa just launched a pilot program for USDC payments among U.S. businesses.

The Circle stock is down in premarket trading amid the release of its Q3 earnings report. TradingView data shows that CRCL is trading around $94, down over 4% from yesterday’s close of $98.