Circle has introduced Arc, an open Layer-1 blockchain aimed at handling large-scale payments, foreign exchange, and capital markets transactions. Built to work with the Ethereum Virtual Machine, Arc uses USDC as its native gas token. The network is designed with features like a stablecoin FX engine, fast settlement in under a second, and privacy options suited for institutional use. Arc will be fully integrated into the network’s existing platform and will remain compatible with other partner blockchains. Its public testnet is expected to launch this fall. The release builds on the momentum from the Circle Payments Network, launched in May, which already has more than 100 financial institutions lined up. Partnerships with major names such as Binance, Corpay, FIS, Fiserv, and OKX are expanding the network’s role in both the crypto and traditional finance sectors.\n\nDuring the second quarter of the 2025 fiscal year, USDC in circulation hit $61.3 billion, up 90% from the comparable quarter of the previous year. As of August 10, it was up another 6.4% to $65.2 billion. Total revenue and reserve income rose 53% to $658 million, and adjusted EBITDA rose 52% to $126 million, boosted by rising demand for USDC. The company finished a $1.2 billion IPO in June by offering 19.9 million new shares at $31 apiece and collecting $583 million after underwriting commissions. However, the listing led to significant non-cash expenses, including $424 million in stock-based compensation and a $167 million increase in convertible debt value due to a higher share price. These charges gave rise to a net loss of $482 million during the quarter. Despite this, reserve income increased 50% compared to the previous year, and other sources of revenue increased by more than 250%.\n\nThe recently enacted GENIUS Act created a federal regulatory regime for payment stablecoins, which was consistent with Circle’s compliance-oriented approach. In July, the firm rolled out Circle Gateway on testnet, enabling cross-chain liquidity instantly without bridging or even prepaid funds. Commercial adoption continues to grow. Binance deepened its integration with Circle technology and introduced USYC for institutional trading collateral. Corpay connected its global FX and card network with USDC for round-the-clock settlement. FIS integrated the network’s infrastructure into its Money Movement Hub to enable faster domestic and cross-border payments. OKX started providing direct USD-to-USDC conversions to its 60 million global users.

Circle Unveils Arc Blockchain As USDC Circulation Surges Past $65 Billion

Circle has launched Arc, an open Layer-1 blockchain designed for large-scale payments, foreign exchange, and capital markets transactions, using USDC as its native gas token. The network leverages the Ethereum Virtual Machine, features fast settlement under one second, and includes privacy options for institutional users. Arc is set to launch its public testnet in the fall and will integrate with Circle’s existing platform while maintaining compatibility with other blockchains. The release follows the expansion of the Circle Payments Network, which has over 100 financial institutions on board. Partnerships with Binance, Corpay, FIS, Fiserv, and OKX are strengthening its presence in both cryptocurrency and traditional finance. USDC circulation reached $65.2 billion by August 10, 2025, up 90% from the same quarter in 2024. The company reported a 53% increase in total revenue and reserve income to $658 million, and a 52% rise in adjusted EBITDA to $126 million, driven by rising demand. Despite a net loss of $482 million in the second quarter due to non-cash expenses including $424 million in stock-based compensation and a $167 million increase in convertible debt, the company completed a $1.2 billion IPO in June, offering 19.9 million shares at $31 each, netting $583 million after underwriting. The GENIUS Act, recently enacted, established a federal regulatory framework for payment stablecoins, aligning with Circle’s compliance strategy. Circle Gateway, launched on testnet in July, enables instant cross-chain liquidity without bridging or prepaid funds. Commercial adoption is growing through integrations with major financial institutions.