Key Notes
- Circle unveils Arc, an EVM-compatible Layer-1 blockchain purpose-built for stablecoin finance.
- Arc will feature USDC as its native gas token, enabling direct payment of transaction fees in stablecoin.
- The network offers sub-second settlement, an integrated FX engine, and opt-in privacy controls.
Circle, the issuer of the USDC stablecoin, has unveiled Arc, an open Layer-1 blockchain. The novel network will power the next generation of stablecoin-based payments, foreign exchange, and capital markets infrastructure.
Fully compatible with the Ethereum Virtual Machine (EVM), Arc will use USDC as its native gas token, enabling transaction fees to be paid directly in the stablecoin. A public testnet is scheduled for launch later this fall.
Circle has announced the launch of Arc, an open Layer-1 blockchain designed to provide enterprise-grade infrastructure for stablecoin payments, foreign exchange, and capital markets applications. The network is EVM-compatible and uses USDC as its native gas token. Arc is expected…
— Wu Blockchain (@WuBlockchain) August 12, 2025
What Arc Brings to the Table
According to Circle, Arc is “purpose-built for stablecoin finance,” delivering features such as an integrated stablecoin FX engine, sub-second settlement finality, and opt-in privacy controls.
The network will be fully integrated into Circle’s existing platform and services, while remaining interoperable with the dozens of other blockchains that already support USDC.
Focus on Stablecoin Speed and Scale
Unlike general-purpose blockchains, Arc focuses solely on optimizing stablecoin transactions for speed, cost efficiency, and enterprise-grade compliance.
The goal is to create a smooth, low-latency environment for payments, cross-border settlements, and capital market operations, areas where stablecoins have already proven their utility but still face scalability and congestion issues on bigger chains.
Circle aims to provide faster and more affordable ways to send and receive money globally. The company emphasized that Arc will also incorporate regulatory-friendly design choices to support transparency and compliance in transactions.
Part of a Bigger Strategic Push
The Arc announcement came alongside Circle’s Q2 2025 financial results, marking the company’s first quarter as a publicly traded entity following its $1.2 billion IPO in June.
Shortly after, Circle stock rose nearly 34% when the Senate passed the GENIUS Act 68–30, providing a federal framework for stablecoins.
We just reported our Q2 2025 earnings, our first as a publicly traded company.
USDC in circulation reached $61.3B at the end of Q2, up 90% YoY, with $5.9T in onchain volume during Q2.
Read the results here: https://t.co/a6fwiWoTNK pic.twitter.com/lgTOOTIEAq
— Circle (@circle) August 12, 2025
In the quarter, USDC in circulation grew 90% year-over-year to $61.3 billion, climbing further to $65.2 billion by August 10. Total revenue and reserve income jumped 53% year-over-year to $658 million, while adjusted EBITDA rose 52% to $126 million.
What’s Next?
Arc’s public testnet will be available later in 2025, opening the door for developers and enterprises to build on a network purpose-built for stablecoin efficiency.
If successful, Arc could begin a journey towards establishing new cryptocurrency milestones, leveraging blockchain’s global demand with the stability and compliance that businesses require.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
