Circle Unveils Arc Blockchain With Q2 Results

Circle Internet Group, Inc. (NYSE: CRCL) — the issuer of USD Coin (USDC) — has unveiled Arc, a new open Layer 1 blockchain aimed at transforming stablecoin payments, foreign exchange, and capital market transactions. The announcement coincided with the release of Circle’s strong Q2 earnings report, underscoring the company’s momentum following its $1.2 billion IPO.

Arc is designed as an enterprise-grade blockchain that addresses speed, cost, and security issues that have limited stablecoin adoption in mainstream finance. According to Circle, the network will provide faster, more affordable, and more secure transactions for both businesses and consumers, with USDC serving as the native gas token.

Arc’s Technical Advantages

Arc is fully EVM-compatible, integrates seamlessly with all existing Circle products, and promises sub-second settlement finality with enterprise-grade security. CEO Jeremy Allaire described the launch as “a defining moment in Circle’s journey to deliver a full-stack platform for the internet financial system.”

USDC currently stands as the second-largest stablecoin, representing $65 billion of the estimated $250 billion stablecoin market, according to Allium.

Strong Q2 Performance

Circle reported a 90% year-over-year increase in USDC circulation, reaching $61.3 billion by the end of Q2. Revenue and reserve income grew 53% to $658 million, though the company posted a net loss of $482 million due to $591 million in non-cash IPO-related charges. Adjusted EBITDA rose 52% to $126 million.

Allaire praised the company’s first quarter as a public entity, citing sustained growth, adoption across diverse industries, and strategic partnerships. He emphasized that the IPO not only marked a pivotal moment for Circle, but also for the broader adoption of stablecoins.

Looking Ahead

Circle plans to launch a public testnet for Arc in fall 2025, giving developers and the public early access to the network before the official mainnet release. Industry observers expect the rollout to be closely watched by both the cryptocurrency and traditional financial sectors.

Those interested can request testnet access via arcnetwork.xyz.