Circle Launches ARC Blockchain to Boost Stablecoin Finance Infrastructure

Circle, the New York-based digital currency firm, has announced the launch of ARC, a Layer-1 blockchain specifically designed for stablecoin finance [1]. This development marks a significant milestone in Circle’s broader mission to build a full-stack platform for the internet financial system, as emphasized by Jeremy Allaire, Co-Founder and CEO of the company. The new blockchain is EVM-compatible and optimized for stablecoin-based applications, with USDC serving as its native gas token [1]. It includes a built-in stablecoin foreign exchange (FX) engine, supports sub-second settlement finality, and offers opt-in privacy controls [1]. ARC will be fully integrated across Circle’s platform and services, ensuring seamless interoperability with existing blockchains and future expansion into enterprise-grade financial infrastructure [1].

This announcement follows a robust financial performance in Q2 2025, during which USDC in circulation surged 90% year-over-year to $61.3 billion [1]. Total revenue and reserve income also rose 53% year-over-year to $658 million, despite a net loss of $482 million, largely attributed to IPO-related non-cash charges [1]. Adjusted EBITDA, however, grew 52% to $126 million, reflecting the company’s continued operational leverage and growth in stablecoin adoption [1].

Circle’s launch of ARC is part of a broader trend of expanding partnerships and product innovation across the digital asset, banking, and payments sectors [1]. Key collaborations include new and expanded relationships with Binance, Corpay, FIS, Fiserv, and OKX [1]. These partnerships aim to facilitate 24/7 settlement, seamless liquidity, and enterprise-grade compliance, further solidifying Circle’s role as a central player in the digital dollar ecosystem [1].

The company also highlighted the successful launch of its Circle Payments Network (CPN) in May, which has already secured four active payment corridors [1]. CPN is positioned for rapid growth in the second half of 2025, with more than 100 financial institutions in the pipeline [1].

Arc is expected to enter a public testnet phase later this year, with a full rollout anticipated in the near future [1]. The blockchain is designed to serve as a foundational infrastructure layer for stablecoin payments, FX, and capital markets applications, offering developers and enterprises an optimized environment to build financial services on the blockchain [1].

This strategic move follows Circle’s $1.2 billion IPO in June 2025, with net proceeds of $583 million from the issuance of 19.9 million Class A shares [1]. The IPO marked a pivotal regulatory and market development with the enactment of the GENIUS Act, which established a federal regulatory framework for payment stablecoins in the U.S. [1].

Analysts view ARC as a critical development in the evolution of stablecoin infrastructure, potentially accelerating the adoption of digital dollars in both traditional and decentralized finance [1]. While no specific analyst forecasts are included in the provided data, the company’s strong financials and growing ecosystem indicate a confident position in the market [1].

Circle’s expanding product suite, including the launch of Circle Gateway in July, which enables instant cross-chain liquidity for USDC, further underscores the company’s commitment to reducing friction in digital asset transactions [1]. As the stablecoin market continues to grow, with Circle’s USDC holding a 28% market share, the introduction of ARC is expected to enhance interoperability and efficiency across financial platforms [1].

By offering a dedicated blockchain for stablecoin finance, Circle is positioning itself to lead in the next phase of the internet financial system [1].

Source: [1]Circle Reports Second Quarter 2025 Results (https://investor.circle.com)