TL;DR

Circle launched Arc, an EVM-compatible Layer 1 blockchain that will use USDC as its native token for fast and secure cross-border payments.
USDC grew 90% year-over-year, surpassing $61 billion in circulation. The company increased its revenue and EBITDA despite accounting losses linked to its IPO.
The firm also introduced the Circle Payments Network, a network connecting financial institutions for stablecoin payments.

Circle announced the launch of Arc, an EVM-compatible Layer 1 blockchain designed to serve as the foundation for applications in capital markets and stablecoin payments.

This new protocol will use USDC as the native token for compliant cross-border transactions, with settlement times under one second and optional privacy features. Additionally, Arc will fully integrate with the company’s ecosystem and services. A public testnet is scheduled for release in fall 2025.

Circle’s Successful 2025

Jeremy Allaire, Circle’s co-founder and CEO, highlighted that the company’s June IPO marked a key moment for both the firm and stablecoin adoption. USDC circulation increased 90% year-over-year, surpassing $61 billion in the second quarter. The company reported revenue and reserve income of $658 million, up 53%, though it posted a $482 million loss mainly due to non-cash charges related to the IPO. The firm holds a 28% market share of USDC and boosted its adjusted EBITDA by 52%, reaching $126 million.

Allaire stated that Arc will interoperate with other existing blockchains and support the development of enterprise-grade financial infrastructure. Circle is expanding its partnership network with companies like FIS, Binance, OKX, Fiserv, and Corpay to enable real-time payments and liquidity. These alliances reinforce its role in the digital dollar payment ecosystem.

The Digital Dollar Revolution

The company also launched the Circle Payments Network (CPN) in May, which has gained strong initial momentum. CPN connects financial institutions to facilitate cross-border payments with instant settlement using regulated stablecoins such as USDC and EURC. Participants include banks, fintechs, neobanks, and digital wallet operators. CPN does not transfer money directly between bank accounts but coordinates the movement of stablecoins and information exchange.

Circle defines the rules and provides APIs for participants to integrate their systems. The goal is for CPN to serve as a platform for developers and to allow Circle to custody reserves and deposits

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Filed under: News - @ August 12, 2025 5:31 pm