Circle Internet Group has launched Arc, an open Layer-1 blockchain engineered specifically for stablecoin finance, positioning USDC as its native gas token. Announced alongside Q2 2025 financial results, Arc features EVM compatibility, sub-second settlement, integrated foreign exchange capabilities, and opt-in privacy controls. CEO Jeremy Allaire hailed the project as a "defining moment" in Circle's mission to build a full-stack internet financial platform.
Financial disclosures revealed robust growth: USDC circulation surged 90% YoY to $61.3 billion ($65.2 billion as of August 10, 2025), while total revenue climbed 53% to $658 million. Despite a $482 million net loss—primarily from $591 million in non-cash IPO-related charges—Circle's $1.2 billion June public offering signaled strong institutional confidence. Arc's public testnet is scheduled for fall 2025, targeting enterprise use cases in payments, FX, and capital markets through partnerships with Binance, Fiserv, OKX, and over 100 institutions in Circle's Payment Network pipeline.
The blockchain aims to bridge infrastructure gaps for compliant large-scale stablecoin adoption, with Allaire projecting it will "accelerate the shift to a stablecoin-powered global economy." Concurrently, Circle expanded USDC utility through Hyperliquid integration, where assets under management recently exceeded $5.5 billion.