Circle Launches Arc Blockchain to Boost Stablecoin Enterprise Use

Circle has launched Arc, a purpose-built Layer-1 blockchain designed to accelerate the adoption of stablecoin finance in enterprise and institutional settings. The blockchain leverages USDC as its native gas token and integrates foreign exchange (FX) capabilities directly into its architecture. This combination aims to address long-standing challenges in blockchain-based finance, including unpredictable gas costs, settlement delays, and compliance limitations [1]. The platform’s design prioritizes predictable transaction costs, sub-second settlement times, and optional privacy features tailored for institutional users [2].

Arc’s architecture is built to be EVM-compatible, allowing seamless migration of existing Ethereum-based tools and smart contracts. This compatibility reduces the friction of adoption for developers while enabling a stablecoin-native environment where transactions are denominated in USDC and other regulated stablecoins. The platform also supports cross-chain interoperability and is designed to facilitate real-time, multi-currency settlements across financial institutions [3]. By embedding FX functionality on-chain, Arc enables institutional-grade currency conversions without reliance on off-chain liquidity pools, streamlining international payment flows [4].

The launch of Arc coincides with Circle’s strong financial performance in Q2 2025, despite a $482 million net loss primarily driven by IPO-related charges. USDC’s circulation has grown by 90% year-over-year, surpassing $65 billion, while the company’s revenue increased by 53%. These figures highlight the expanding role of stablecoins in global finance and underscore Circle’s strategic push to establish Arc as foundational infrastructure for the next phase of digital finance [5]. The timing of the announcement aligns with political momentum, including the proposed GENIUS Act, which aims to foster a regulated framework for stablecoin innovation [6].

Circle’s broader infrastructure ambitions include the Circle Payments Network (CPN), a cross-border settlement system that enables real-time transfers of stablecoins like USDC and EURC between financial institutions. CPN operates by coordinating digital asset movements across a network of banks and fintechs without directly transferring funds between accounts. This model supports a developer-friendly ecosystem while allowing Circle to maintain custody of reserves, reinforcing trust and regulatory alignment [7].

Arc’s architecture is intended to support a range of advanced financial use cases, including tokenized commodities, stablecoin-backed lending, and agentic commerce—self-executing financial contracts enabled by AI agents. The blockchain’s sub-second finality and integrated FX engine make it particularly well-suited for payment processors, trading platforms, and lenders seeking to expand into digital asset markets [8]. The platform’s opt-in privacy features also aim to address regulatory concerns, offering selective transaction shielding without compromising transparency [9].

As stablecoins continue to gain traction in both payments and capital markets, Arc positions Circle as a central player in the development of next-generation financial infrastructure. The company’s CEO, Jeremy Allaire, has emphasized that the June 2025 IPO marked a pivotal milestone in Circle’s journey to scale stablecoin adoption and build a robust digital payment ecosystem [10]. With Arc now entering private testnet and a public testnet planned for fall 2025, the platform is poised to attract developers and institutional partners to build the future of stablecoin-based finance [11].

Source:

[1] Introducing Arc: An Open Layer-1 Blockchain Purpose-Built (https://www.circle.com/blog/introducing-arc-an-open-layer-1-blockchain-purpose-built-for-stablecoin-finance)

[2] Circle's Arc Layer-1 blockchain advances stablecoin (https://crypto.news/circles-arc-layer-1-blockchain-advances-stablecoin-finance-with-enterprise-focus/)

[3] Circle Launches EVM-Compatible Arc with Focus on (https://crypto-economy.com/circle-launches-evm-compatible-arc-with-focus-on-compliance-and-speed/)

[4] Circle Launches Arc, a New Layer-1 Blockchain for (https://cryptodnes.bg/en/circle-launches-arc-a-new-layer-1-blockchain-for-stablecoin-and-capital-market-infrastructure/)

[5] Circle Introduces Arc to Power the Next Era of Stablecoin (https://coincentral.com/circle-introduces-arc-to-power-the-next-era-of-stablecoin-payments/)

[6] Circle Unveils Layer-1 Blockchain Arc, Reports $428 (https://www.coindesk.com/business/2025/08/12/circle-unveils-layer-1-blockchain-arc-reports-usd428-million-q2-loss)

[7] Circle Arc vs Stripe Tempo vs Robinhood L2 - Blockchain (https://www.ccn.com/education/crypto/circle-arc-vs-stripe-tempo-vs-robinhood-l2-explained/)

[8] Circle posts 53% revenue jump, unveils Arc blockchain for (https://www.msn.com/en-us/money/markets/circle-posts-53-revenue-jump-unveils-arc-blockchain-for-next-gen-stablecoin-payments/ar-AA1KnoqB?ocid=finance-verthp-feeds)

[9] USDC Parent's Revenue Growth Fuels Stock Climb (http://markets.chroniclejournal.com/chroniclejournal/article/marketminute-2025-8-12-circle-internet-group-defies-loss-usdc-parents-revenue-growth-fuels-stock-climb)