Circle's Native Token Aims to Redefine Internet Money Governance

Circle Eyes Native Token for Arc as Q3 Profits Surge

Stablecoin issuer Circle Internet Group is advancing plans to launch a native token on its Arc Network, a move aimed at fostering network participation and aligning stakeholder incentives as it builds out its Layer 1 blockchain. The announcement, disclosed in the company's Q3 2025 earnings release on November 12, comes amid record financial performance, with revenue hitting $740 million—a 66% year-over-year increase—and net income surging 202% to $214 million, as Circle hit $740 million in Q3 revenue growth, outlines plan for its Arc Layer 1 token reported.

The Arc Network, described as a "blockchain purpose-built for stablecoin transactions," features stablecoin-based gas payments and sub-second finality.

Launched in October, the public testnet has already attracted over 100 participants, including Goldman Sachs, BlackRock, Visa, and Amazon Web Services, as Circle plans native token for Arc blockchain as Q3 profit surges noted. Circle's CEO Jeremy Allaire emphasized the project's role in creating a "new economic operating system for the Internet," where programmable digital money can streamline global financial infrastructure, as Circle Internet Group Inc (CRCL) Q3 2025 Earnings Call Highlights: Record Growth in USDC ... reported.

The proposed native token is part of a broader strategy to transition Arc toward a decentralized governance model. "A native token could foster network participation to drive adoption, further align the interests of Arc stakeholders, and support the long-term growth and success of the Arc network," the company stated in its earnings report, as Circle plans native token for Arc blockchain as Q3 profit surges reported. While details remain scarce, the token is expected to incentivize developers and institutions to contribute to the ecosystem, mirroring similar models in decentralized finance (DeFi), as Circle exploring native token launch on Arc Network noted.

Circle's financial results underscore its growing influence in the stablecoin market. USDC, the company's dollar-pegged stablecoin, saw circulation surge to $73.7 billion at quarter-end, a 108% year-over-year increase, according to CoinMarketCap data Circle Reports Q3 Earnings Surge to $214M, Eyes Native Arc Network Token. The firm also raised its 2025 revenue outlook, projecting $90–$100 million in "other revenue" from subscriptions and services, up from prior guidance of $75–$85 million, as Circle hit $740 million in Q3 revenue growth, outlines plan for its Arc Layer 1 token reported.

The Arc initiative is gaining traction as institutional demand for tokenized infrastructure grows. Over 29 financial institutions, including Brex, Kraken, and Deutsche Börse, are already leveraging Circle's Circle Payments Network (CPN) for cross-border transactions, with annualized volume reaching $3.4 billion, as Circle’s Strong Q3 Earnings Offset by CRCL Stock Drop Amid Arc Token Plans reported. Meanwhile, Circle's tokenized money market fund (USYC) surpassed $1 billion in assets under management, reflecting growing appetite for programmable financial tools, as Circle explores native token for Arc network as Q3 shows sharp growth in USDC supply, profits reported.

Analysts view the native token as a strategic catalyst. William Blair reiterated an "outperform" rating for Circle shares, citing USDC's dominance in liquidity and infrastructure adoption, as Circle’s USDC Keeps Climbing; William Blair Reiterates Outperform After 3Q Results noted. Bernstein Research also projected USDC's supply could triple by 2027, capturing roughly one-third of the global stablecoin market, as Circle explores native token for Arc network as Q3 shows sharp growth in USDC supply, profits reported.

However, the path to decentralization is not without challenges. While Circle initially envisioned USDC-based gas fees for Arc, the company now aims to shift toward a distributed validator model, as Circle says it’s ‘exploring possibility’ of launching new token in third quarter financial report reported. This transition reflects broader industry trends toward tokenized governance but may face regulatory scrutiny as the U.S. government finalizes rules under the Genius Act.

As Circle prepares for a 2026 mainnet launch of Arc, the firm's ability to balance institutional partnerships with decentralized governance will be critical. With USDC's circulation expected to grow at a 40% compound annual rate through the cycle, as Circle’s Strong Q3 Earnings Offset by CRCL Stock Drop Amid Arc Token Plans reported, the company is positioning itself at the forefront of a financial system increasingly built on code and smart contracts.