Circle Builds 'Economic OS' with Arc's Native Token Launch

Circle, the issuer of the second-largest stablecoin USDC, is advancing plans to launch a native token for its Arc blockchain network, a move aimed at decentralizing governance and accelerating adoption. The company, which reported a 66% year-over-year revenue surge to $740 million and a 202% jump in net income to $214 million in Q3 2025, revealed the token initiative alongside its financial results, according to a Cointelegraph report. The native token would replace stablecoin-denominated gas fees on Arc and align stakeholders through distributed validator incentives, as noted in a Parameter analysis.

The Arc network, a layer-1 blockchain optimized for stablecoin transactions, launched its public testnet in October with participation from over 100 institutions, including Goldman Sachs, BlackRock, and Visa, as detailed in a Coingape report. Circle's long-term vision includes transitioning Arc to a decentralized governance model, as outlined in its Q3 earnings statement, according to a Crypto-Economy analysis. The company also highlighted the Arc network's potential to become an open infrastructure for tokenized financial products, with 29 active institutions on its Circle Payments Network (CPN) and $3.4 billion in annualized transaction volume, as reported in a Yahoo Finance piece.

Financial performance underscored Circle's growing influence in the stablecoin market. USDC circulation reached $73.7 billion by Q3's end, a 108% year-over-year increase, while adjusted EBITDA climbed 78% to $166 million, as noted in a Coinpedia report. The results contrasted with a net loss of $482 million in Q2 2025, driven by IPO-related charges, as reported in a Coinedition report. However, costs rose 74% year-over-year to $448 million, reflecting increased operational expenses tied to workforce expansion and compliance, as reported in a Bitcoinsistemi analysis.

The native token proposal aligns with broader industry trends toward application-specific blockchains, which prioritize scalability and cost efficiency over general-purpose networks, as noted in a Cointelegraph article. Circle's CEO, Jeremy Allaire, emphasized the firm's goal to build an "Economic OS for the Internet," integrating programmable digital assets with traditional finance, according to a Crypto-Economy analysis.

Market reactions were mixed. Despite strong earnings, Circle's stock (CRCL) fell over 4% in premarket trading, reflecting broader crypto market volatility, according to a Crypto-Economy analysis. The move also coincided with heightened competition in the stablecoin sector, as regulators in the U.S. and globally refine frameworks for digital assets, as noted in a Yahoo Finance piece.