Circle Launches Arc Blockchain to Power USDC-Based Financial Infrastructure

Circle, the issuer of the U.S. Dollar Coin (USDC), has launched Arc, a new Layer-1 blockchain specifically designed for stablecoin-based financial infrastructure. This marks a pivotal step in Circle’s vision to build a full-stack internet financial system, leveraging USDC as both the native gas token and a key utility for facilitating payments, foreign exchange, and capital market activities [1]. Arc is EVM-compatible and features a built-in stablecoin foreign exchange engine, enabling sub-second settlements and opt-in privacy controls. The platform is intended to offer a scalable and secure environment for developers and institutions to build stablecoin-powered applications [1].

The announcement of Arc came alongside the release of Circle’s Q2 2025 financial results, which showed a significant expansion in its core business. USDC's circulation increased by 90% year-over-year to $61.3 billion, reaching $65.2 billion as of August 10, 2025. Total revenue and reserve income also rose by 53% to $658 million, with adjusted EBITDA increasing by 52% to $126 million [1]. Despite reporting a net loss of $482 million, largely due to non-cash charges related to its June 2025 IPO, Circle emphasized that the offering represented a key milestone in its broader strategy to expand the use of stablecoins in mainstream finance.

Circle's CEO, Jeremy Allaire, described the launch of Arc as a “defining moment” for the company, as well as for the evolution of stablecoin finance. He highlighted growing interest from global financial institutions and internet companies in integrating stablecoins into their operations. Arc is designed to bridge the gap between the increasing adoption of stablecoins and the infrastructure required to support large-scale, compliant, and efficient use of these digital assets [1].

In addition to Arc, Circle also announced that its native USDC and Cross-Chain Transfer Protocol (CCTP) V2 will soon be launched on Hyperliquid, a decentralized finance trading platform. This move aligns with the company’s broader strategy to deepen the integration of USDC into global payment flows, cross-border transactions, and capital markets infrastructure [1].

Circle is actively expanding its ecosystem through its Circle Payments Network, a platform that enables financial institutions to send and receive stablecoin payments. The company reports that more than 100 institutions are currently in the onboarding process, with partnerships spanning digital asset platforms, banking providers, and payment processors [1]. The company is aiming to position stablecoins as a core component of modern financial systems, moving beyond niche crypto use cases into broader economic sectors.

Arc is expected to be made available through a public testnet this fall, with full integration into Circle’s existing platform and compatibility with multiple partner blockchains. By embedding USDC at the core of its infrastructure, Circle aims to provide a robust, fast, and stable environment for enterprise-level financial applications [1]. The launch of Arc represents a major step forward in Circle’s mission to transform the global financial system into a stablecoin-powered internet financial ecosystem.

Source: [1] Circle Debuts Layer-1 Blockchain Arc Using USDC for Native Gas – https://cryptonews.com/news/circle-launches-arc-blockchain-for-stablecoin-payments-with-usdc-as-native-gas/