Circle has officially announced the launch of Arc, an enterprise-grade open Layer-1 blockchain built to power stablecoin payments, foreign exchange, and capital market applications.
The network is EVM-compatible and will use USDC as its native gas token, enabling direct integration with existing Ethereum-based tools and infrastructure.
Arc will feature sub-second settlement, an integrated stablecoin FX engine, and opt-in privacy controls, making it highly suitable for institutional use cases.
Circle plans to roll out Arc’s public testnet later this fall, with full integration into its existing suite of services while retaining interoperability with the dozens of blockchains already supported by the company.
CEO Jeremy Allaire called the launch a “defining moment” in Circle’s mission to deliver a full-stack internet financial system.
Q2 2025 Earnings Show Significant Growth in USDC Adoption
The Arc announcement came alongside Circle’s first quarterly earnings report as a publicly traded company, following its $1.2 billion IPO in June.
USDC in circulation reached $61.3 billion at the end of Q2 2025, marking a 90% year-over-year increase, with an additional 6.4% growth to $65.2 billion recorded by August 10.
Onchain USDC volume for the quarter totaled an impressive $5.9 trillion, underscoring the token’s role as one of the most widely used stablecoins globally.
Revenue and reserve income rose 53% year-over-year, reaching $658 million, while adjusted EBITDA went up 52% to $126 million.
Losses were owing mainly to non-cash IPO-related expenses that added up to $591 million, $424 million comprising stock-based compensation, and $167 million relating to convertible debt valuation changes.
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Strategic Partnerships and Regulatory Momentum Drive Growth
Circle’s Q2 corporate strategy focused on an aggressive push to expand its commercial network and regulatory standing.
The signing of the GENIUS Act into U.S. law set forth a federal framework for payment stablecoins, thereby reinforcing Circle’s standing as a compliant and regulated issuer.
Circle also launched the Circle Payments Network in May to facilitate stablecoin use in cross-border and domestic payments by over 100 financial institutions.
As a matter of fact, the strategic partnerships with Binance, Corpay, FIS, Fiserv, and OKX were renewed or established, helping to increase USDC’s existence and utility on the global stage.
These relationships would see USDC integrated into platforms for institutional trading, payment centers, foreign exchange systems, and banking systems.
In the end, it will be a basis for broader acceptance in traditional markets as well as crypto-native ones.
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IPO Success Marks Milestone for Public Market Entry
Circle’s IPO in June was a milestone for the company and the stablecoin marketplace.
The offering was for 39.1 million shares, including 19.9 million newly issued primary shares of Class A common stock sold at $31 per share, for net proceeds of $583 million after expenses.
The debut represented a resounding vote of confidence by investors in Circle’s prospects for growth and competitive position, even as the company absorbed significant non-cash expenses related to the execution of the IPO.
Allaire noted that the listing is more than a funding event but rather an inflection point for global stablecoin adoption.
The IPO also enabled Circle to commit 2.68 million shares to the Circle Foundation under the Pledge 1% corporate philanthropy movement, cementing its social impact commitment.
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Competitive Landscape in Crypto’s Q2 Earnings Season
Circle’s strong quarter comes amid a broader wave of positive earnings across the cryptocurrency sector.
On July 31, Kraken reported an 18% year-over-year revenue increase to $412 million, alongside a 19% boost in trading volume to $186.8 billion and a 37% rise in funded accounts.
The following day, Coinbase posted its most profitable quarter to date with $1.4 billion in net income, driven by derivatives launches, growth of its Base Chain, and the acquisition of Deribit.
On August 2, Trump Media revealed record Q2 financial assets totaling $3.1 billion, with Eric Trump publicly encouraging investors to “buy ETH and BTC dips.”
All these go to show how the crypto sector is rapidly growing as various players leverage regulatory clarity and institutional adoption amongst many more strategies for growth.
Also Read: Coinbase Foresees Bitcoin Market Weakness Continuing Into Late Q2, Despite Growing Accumulation