In its latest report, Circle, the issuer of the USDC stablecoin, has outlined a vision where regulated stablecoins like USDC could form a new global financial settlement layer for the internet. The company positions this as a hybrid layer bridging traditional finance and on-chain infrastructure, bringing internet-level innovation to money.
USDC demonstrated significant growth throughout 2025, aggressively minting new tokens and expanding its market share each quarter to reach 29% by year-end. In terms of transfer volume, USDC carries approximately 40% of value, solidifying its position as the second-largest stablecoin behind Tether's USDT.
Circle's ambitions extend beyond simple token issuance. The company is preparing to launch Arc, a scalable blockchain designed as a native infrastructure for payments. Arc aims to compete with other payment-focused chains like Polygon and Tether's Plasma network. The blockchain is envisioned to handle not just payments but also capital formation, contracts, and payroll coordination, effectively becoming an "entire economic operating system." Arc will use USDC to pay for transaction fees and employs deterministic finality for enhanced security and regulatory compliance. The network has been running as a testnet since October 2025.
Internationally, Circle has benefited from regulatory developments. The launch of the Markets in Crypto-Assets (MiCA) regulation in 2024 spurred the adoption of Circle's euro-denominated stablecoin, EURC, whose supply grew more than eightfold following the regulatory clarity.
Circle enters a rapidly consolidating market where fintech apps like Revolut and on-chain payment channels are competing to define the next generation of financial infrastructure. The company believes stablecoins will be widely adopted by banks, payment companies, and institutions, acting as connective tissue to reduce friction from siloed systems and fragmented liquidity.
