Ethereum News Today: Circle Launches ARC Blockchain for Stablecoin Payments and FX with USDC Gas

Circle has announced the development of a new Layer-1 blockchain, ARC, designed specifically for stablecoin payments, foreign exchange (FX), and capital markets applications [1]. The platform, expected to launch with a public testnet in the fall of 2025, will use USDC as its native gas token, enabling users to pay transaction fees in the stablecoin [2]. This move is part of the company’s broader strategy to build infrastructure for the evolving digital financial ecosystem [3].

The ARC blockchain is EVM-compatible, allowing developers to deploy Ethereum-based smart contracts without extensive code rewrites [4]. It also features a built-in stablecoin FX engine and offers sub-second settlement finality, making it suitable for institutional-grade financial services [5]. The platform includes opt-in privacy controls, giving users the ability to manage how much transaction data is disclosed publicly [6]. Furthermore, the blockchain is designed to integrate seamlessly with Circle’s existing financial infrastructure, enhancing compliance and transaction efficiency [7].

The announcement coincided with the release of Circle’s second-quarter 2025 financial results, which showed USDC circulation exceeding $61 billion, reflecting a 90% year-over-year increase [8]. Despite a net loss of $482 million primarily due to non-cash charges related to its recent IPO, the company reported total revenue and reserve income growth of 53% to $658 million for the quarter [9]. CEO Jeremy Allaire highlighted the IPO as a pivotal milestone for both the firm and the stablecoin industry, underscoring Circle’s commitment to advancing financial infrastructure [10].

By creating a blockchain specifically tailored for stablecoin and capital market applications, Circle is addressing key challenges in cross-border payments and financial services, including speed, compliance, and cost efficiency [11]. The use of USDC as the native token reinforces its role within Circle’s ecosystem and extends its utility beyond simple payment functions [12]. The platform aims to support a new wave of decentralized applications focused on global finance, particularly those requiring rapid settlement and regulatory adherence [13].

The timing of the ARC launch, following the company’s IPO, appears to be a strategic move to strengthen Circle’s position in the stablecoin market and expand into new financial infrastructure opportunities [14]. The EVM compatibility of ARC is expected to attract developers familiar with Ethereum tools, potentially accelerating the adoption of the platform [16].

USDC, currently priced at $1.00, has a market capitalization of $65.62 billion. Over the past 24 hours, it recorded a trading volume of $17.71 billion, an 18.87% increase [12]. However, the token has seen a 0.01% decline over the past 90 days [12].

Industry observers suggest that the launch of ARC could influence the stablecoin landscape, particularly in terms of regulatory developments and technological innovation [14]. The platform’s alignment with Ethereum standards may attract significant developer interest, potentially fostering new applications in the stablecoin market [14].

Sources:

[1] title1: USDC Issuer Circle Introduces New Layer-1 Blockchain Arc

url1: https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc

[2] title2: Circle to Launch Arc, a layer 1 blockchain for stablecoins

url2: https://cryptobriefing.com/circle-arc-blockchain-stablecoins/

[3] title3: Circle to Launch In-House Layer-1 Blockchain Arc as Q2 ...

url3: https://www.ccn.com/news/crypto/circle-to-launch-in-house-layer-1-blockchain-arc-as-q2-earnings-reveal-90-usdc-growth/

[4] title4: Circle Launches Arc, a New Layer-1 Blockchain for ...

url4: https://cryptodnes.bg/en/circle-launches-arc-a-new-layer-1-blockchain-for-stablecoin-and-capital-market-infrastructure/

[5] title5: Circle Unveils Arc – A New Blockchain Built for Stablecoins

url5: https://coinpedia.org/crypto-live-news/circle-unveils-arc-a-new-blockchain-built-for-stablecoins/

[6] title6: Circle Announces Stablecoin Payment Blockchain Arc

url6: https://www.benzinga.com/crypto/cryptocurrency/25/08/47054985/circle-announces-stablecoin-payment-blockchain-arc

[7] title7: Circle Launches Arc Blockchain for Stablecoin Payments

url7: https://coingape.com/usdc-issuer-circle-launches-arc-blockchain-for-stablecoin-payments/

[8] title8: Circle Launches Arc Blockchain to Boost Stablecoin ...

url8: https://www.ainvest.com/news/circle-launches-arc-blockchain-boost-stablecoin-finance-90-usdc-growth-482m-loss-2508/

[9] title9: Circle Posts Strong Q2 Growth, Unveils New Blockchain Arc

url9: https://www.altcoinbuzz.io/cryptocurrency-news/circle-posts-strong-q2-growth-unveils-new-blockchain-arc/

[10] title10: USDC Issuer Circle Introduces New Layer-1 Blockchain Arc

[11] title11: Circle to Launch Arc, a layer 1 blockchain for stablecoins

[12] title12: Circle to Launch In-House Layer-1 Blockchain Arc as Q2 ...

[13] title13: Circle Launches Arc, a New Layer-1 Blockchain for ...

[14] title14: Circle Unveils Arc – A New Blockchain Built for Stablecoins

[15] title15: Circle Announces Stablecoin Payment Blockchain Arc

[16] title16: Circle Launches Arc Blockchain for Stablecoin Payments