Circle Unveils Arc Blockchain, Posts 53% Revenue Jump and $482M Net Loss

Circle Inc., a leading stablecoin issuer, unveiled a new Layer-1 blockchain called Arc and reported robust financial performance in its first post-IPO earnings call on August 12, 2025. The company highlighted significant revenue growth, expanded USDC usage, and a strategic shift toward building a full-stack financial infrastructure for the digital economy [1].

According to the earnings report, Circle’s total revenue and reserve income in the second quarter of 2025 reached $658 million, reflecting a 53% year-over-year increase. The circulating supply of USDC, Circle’s stablecoin, grew 90% year-over-year to $61.3 billion as of June 30, 2025, and further expanded to $65.2 billion by August 10, 2025. Despite this revenue growth, the company recorded a net loss of $482 million for the quarter, primarily due to $591 million in non-cash IPO-related expenses. Adjusted EBITDA, however, increased by 52% year-over-year to $126 million, reflecting strong operating leverage as USDC adoption continues to rise [1].

Arc, Circle’s newly launched blockchain, is designed to enhance stablecoin finance by offering a fast, efficient, and compliant platform for cross-border transactions. The platform integrates USDC as the native gas token, sub-second settlement finality, and an embedded foreign exchange (FX) engine, addressing inefficiencies in existing blockchain systems such as high gas volatility and delays. The blockchain will also feature opt-in privacy controls and will be interoperable with other blockchains supported by Circle. A public testnet for Arc is expected to launch in the fall of 2025 [1].

The launch of Arc coincides with strong commercial momentum for Circle. The company has expanded partnerships with major financial institutions, including Binance, Corpay, FIS, Fiserv, and OKX, to integrate USDC into their services. In addition, the Circle Payments Network, launched in May 2025, has attracted more than 100 financial institutions, indicating growing institutional interest in stablecoin-based infrastructure [1].

Circle’s IPO in June 2025, which raised $1.2 billion, marked a pivotal moment in the company’s growth trajectory. The company sold 19.9 million shares at $31 per share, generating $583 million in net proceeds after underwriting costs. The capital raised has supported the company’s efforts to develop its platform and scale operations.

The timing of Arc’s launch reflects a broader strategic shift toward building a full-stack platform for the “internet financial system.” Circle aims to position itself as a central player in the evolving digital asset ecosystem by integrating blockchain infrastructure, stablecoin issuance, and financial services. The introduction of Arc also aligns with recent regulatory developments, such as the passage of the GENIUS Act, which established a federal regulatory framework for payment stablecoins in the U.S. [1].

While the Q2 net loss is largely attributed to one-time, non-operational costs linked to the IPO, the core business remains profitable, with Adjusted EBITDA growing in line with USDC’s expanding usage. This suggests that the company is well-positioned to convert its public listing into long-term value, provided it continues to scale its platform and reduce non-recurring expenses [1].

As Arc progresses toward its public testnet launch, the broader market will closely monitor how it integrates with existing blockchain infrastructure and whether it can deliver on its promise of enhanced efficiency for stablecoin transactions [1].

Source:

[1] Circle Reports Second Quarter 2025 Results (https://www.circle.com/pressroom/circle-reports-second-quarter-2025-results)

[2] Circle Launches Arc Blockchain to Boost Stablecoin (https://www.ainvest.com/news/circle-launches-arc-blockchain-boost-stablecoin-enterprise-2508/)

[3] Circle Unveils Layer-1 Blockchain Arc, Reports $428 Million Q2 Loss (https://www.coindesk.com/business/2025/08/12/circle-unveils-layer-1-blockchain-arc-reports-usd428-million-q2-loss)