Circle Launches Arc Blockchain Amid 53% Revenue Growth and 482M Net Loss

Circle, the issuer of the USDC stablecoin, has announced the launch of Arc, a purpose-built Layer-1 blockchain optimized for stablecoin-based financial applications. This move follows the firm’s Q2 2025 earnings report, which showed USDC in circulation reaching $61.3 billion—a 90% year-over-year increase—with over $5.9 trillion in on-chain transactions recorded during the same period [1].

Arc is designed as a scalable, secure, and EVM-compatible blockchain, with USDC serving as the native gas token. This approach aims to simplify on-chain payments by allowing users to pay transaction fees directly in stablecoin. Key features include real-time transaction finality, a pre-built FX engine for cross-currency swaps, and optional privacy controls that maintain compliance. The network will be fully interoperable with the broader multichain ecosystem and will support seamless integration with existing USDC deployments on 24 partner chains [1].

The launch of Arc coincides with Circle’s recent $1.2 billion initial public offering and partnerships with major players such as Binance, FIS, OKX, and others. These collaborations aim to expand the utility of USDC in payments, capital markets, and cross-border transactions. The company has also launched the Circle Payments Network, which enables financial institutions to provide real-time payments using stablecoins. Over 100 institutions are already in the pipeline [1].

Financial metrics from Q2 2025 underscore the growing importance of USDC in the global digital finance landscape. Revenue and reserve income totaled $658 million, representing a 53% year-over-year increase, while adjusted EBITDA rose by 52% to $126 million. However, the firm also reported a $482 million net loss, largely driven by one-time IPO-related expenses, including $424 million in stock-based compensation and a $167 million debt revaluation [1].

Circle has positioned Arc as foundational infrastructure for the next phase of internet finance, aiming to enable real-time, 24/7 settlement of stablecoin transactions. The blockchain will be open-sourced under a permissive license, encouraging developers to build financial applications on top of it. The company’s CEO described the quarter as a “defining moment” for the stablecoin ecosystem and emphasized the increasing interest in USDC-based solutions across banking, payments, and capital markets [1].

The Arc launch, combined with USDC’s growing adoption and strategic partnerships, signals a strong push by Circle to solidify its role in the stablecoin-driven financial infrastructure. The market will closely watch the public testnet rollout this year and assess how effectively Circle can convert its expanding revenue into sustainable profitability while maintaining USDC’s central position in the evolving digital economy [1].

Source: [1] Circle unveils Arc Blockchain amid 53% revenue surge, 482M Q2 loss (https://www.bitcoininsider.org/article/282577/circle-unveils-arc-blockchain-amid-53-revenue-surge-482m-q2-loss)