TL;DR
- Circle will launch Arc, a layer-1 blockchain compatible with EVM that will use USDC as its native token and offer integrated swaps.
- Circle’s revenue and reserve income rose 53% year-over-year in Q2, reaching $658 million.
- USDC has a market capitalization of $65.6 billion across 24 networks, with $42.6 billion on Ethereum.
Circle, the issuer of the USDC stablecoin and a publicly traded company on the New York Stock Exchange under the symbol CRCL, announced the launch of Arc, a layer-1 blockchain compatible with the Ethereum Virtual Machine that will have USDC as its native gas token.
The project aims to build infrastructure focused on stablecoin payments, foreign exchange transactions, and capital markets applications. The network will feature an integrated swap engine, sub-second settlement finality, and configurable privacy controls. The initial phase will roll out as a public testnet in the fall and will be fully connected to Circle’s services, as well as the multiple blockchains the company already supports.
Circle’s Financial Report
Alongside the announcement, Circle reported its second-quarter 2025 results, with revenue and reserve income of $658 million, up 53% from the same period last year. Adjusted EBITDA reached $126 million, an increase of 52% year-over-year. The company posted a net loss of $482 million due to $591 million in non-cash charges related to its IPO, including $424 million in stock-based compensation and $167 million from an increase in the value of convertible debt following the rise in its share price.
USDC maintains a market capitalization of $65.6 billion across 24 networks, with Ethereum accounting for $42.6 billion of the total. Arc will integrate this infrastructure to enable native use of the token on its network, removing the need for intermediary currencies to pay fees and improving transaction efficiency.
Post-IPO Numbers
Circle made its public market debut on June 5, 2025, raising $1.05 billion with an initial share price of $69. The stock reached an all-time high of $292.8 on June 23 before falling to $161.2, a 21% drop over the past 30 days. After releasing earnings, the share price rose 6.5% in pre-market trading to $172.01.
The launch of Arc comes amid a clear trend of technology and financial companies developing their own networks. Stripe is working on Tempo with Paradigm, Robinhood introduced a layer-2 blockchain for tokenization in June, and Shopify enabled USDC payments on Coinbase’s Base network
