New enterprise-grade layer-1 network to integrate stablecoin payments, FX, and capital markets
Circle, the publicly traded company behind the USDC stablecoin, announced it will launch its own layer-1 blockchain later this year, following a sharp rise in stablecoin adoption. The move comes as USDC’s circulation grew 90% year-over-year in Q2 2025, with the token’s market capitalization reaching $65.6 billion.
Enterprise-Grade Arc Blockchain to Go Live in Testnet
The new network, named Arc, will be compatible with the Ethereum Virtual Machine (EVM) and is designed as a purpose-built platform for stablecoin finance. The company plans to launch a public testnet this fall, featuring USDC as its native gas token — meaning transaction fees can be paid directly in USDC.
Arc will include a stablecoin foreign exchange engine, sub-second settlement finality, and opt-in privacy controls. Importantly, the blockchain will be fully integrated across Circle’s existing services while maintaining interoperability with 24 partner blockchains already supporting USDC.
Strong Revenue Growth Signals Expanding Market
Circle’s Q2 2025 earnings report revealed a 53% year-over-year increase in total revenue and reserve income, totaling $658 million. The company credited both higher transaction volumes and increased USDC demand for the performance boost.
“As global demand for transparent and regulated digital dollars rises, purpose-built infrastructure like Arc will play a critical role,” commented digital asset analysts. “This move positions Circle not just as a stablecoin issuer, but as a core infrastructure provider.”
At present, Ethereum remains the largest network for USDC, hosting $42.6 billion of the total supply. However, analysts expect Arc could gradually attract enterprise users seeking faster settlements, lower fees, and integrated FX capabilities.
With the launch of Arc, Circle aims to strengthen its role in the evolving digital economy — and secure USDC’s position as a leading bridge between traditional finance and blockchain-based payments
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.