Circle Internet Group announced it will launch a new Layer-1 blockchain called Arc this fall, designed to power stablecoin payments, foreign exchange, and capital market transactions.
The platform will use USDC as its native gas token, be compatible with Ethereum’s virtual machine, and include features like an integrated FX engine, sub-second settlement, and optional privacy controls. Circle said Arc will connect with its existing services and be interoperable with other supported blockchains.
The announcement came alongside Circle’s second-quarter 2025 earnings release, the company’s first since going public in June through a $1.2 billion IPO. According to the report, USDC in circulation grew 90% year-over-year in Q2 to $61.3 billion and had reached $65.2 billion by August 10.
Total revenue and reserve income for the quarter climbed 53% to $658 million, while the company reported a net loss of $482 million, largely due to $591 million in IPO-related non-cash charges.
“Arc is designed to be the fastest path for USDC payments and settlement across the internet,” said Jeremy Allaire, Circle’s Co-Founder and CEO. He added that the blockchain aims to offer a foundation for regulated digital financial transactions worldwide.
The company noted Arc’s testnet will be open to the public in the fall, with a focus on speed, interoperability, and enterprise-grade reliability.
Circle has been expanding its ecosystem throughout 2025. For instance, in April, it launched the Circle Payments Network, which now has more than 100 institutions in its pipeline.
In June, it introduced Circle Gateway, a service that allows instant cross-chain liquidity between USDC-supported blockchains. Circle has also been active on the regulatory front, supporting the new GENIUS Act in the U.S., which sets rules for dollar-backed stablecoins.
The firm has strengthened partnerships with Binance, OKX, and Corpay to grow USDC adoption in global payments. Following the Arc announcement and earnings release, CRCL shares rose more than 10% in pre-market trading.
The company said it expects Arc to help drive faster, cheaper, and more secure transactions for businesses, developers, and institutions worldwide.
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