Circle Internet Group, Inc. (NYSE: CRCL) has announced the launch of Arc, an open, EVM-compatible Layer-1 blockchain designed to power enterprise-grade stablecoin payments, foreign exchange, and capital markets applications.
According to the company’s press release, Arc is slated to debut on a public testnet this fall and will feature USD Coin (USDC) as its native gas token. The network will also include an integrated stablecoin FX engine, sub-second settlement finality, and opt-in privacy controls. Arc will be fully integrated across Circle’s platform and services while remaining interoperable with dozens of partner blockchains.
IPO Momentum and Financial Results
The unveiling comes just two months after Circle’s $1.2 billion initial public offering in June and in conjunction with its second-quarter earnings report. The company posted a 53% year-on-year increase in total revenue and reserve income to $658 million. USDC in circulation surged 90% year-over-year to $61.3 billion at quarter end and has since grown an additional 6.4% to $65.2 billion as of August 10, 2025. Adjusted EBITDA rose 52% year-on-year to $126 million.
However, Circle reported a net loss of $482 million, largely due to IPO-related non-cash charges totaling $591 million. These included $424 million in stock-based compensation expenses triggered by IPO vesting conditions and a $167 million increase in the fair value of convertible debt tied to its share price rise.
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
“I’m proud of Circle’s performance in the second quarter, our first as a public company, where we demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners,” Jeremy Allaire, Circle’s Co-Founder, CEO and Chairman said in a statemente. “Circle’s successful IPO in June marked a pivotal moment—not just for our company, but for the broader adoption of stablecoins and the growth of the new internet financial system.
Corporate and Commercial Highlights
Beyond Arc, Circle has been accelerating commercial engagement across the digital asset, banking, payments, and capital markets industries. It launched the Circle Payments Network in May, attracting over 100 financial institutions to its stablecoin payment infrastructure. The company also announced new and expanded partnerships with Binance, Corpay, FIS, Fiserv, OKX, and others. Circle joined Pledge 1%, committing 2,682,392 Class A shares to the Circle Foundation before the IPO to support global impact initiatives.
Positioning Arc in the Blockchain Ecosystem
Arc is designed as a dedicated infrastructure layer for stablecoin transactions, offering developers an enterprise-grade environment with both speed and regulatory alignment in mind. Circle notes that the blockchain’s opt-in privacy features and integrated FX capabilities are aimed at enabling more efficient cross-border payments and capital markets settlements. This could potentially help position Arc as a competitive alternative to existing Layer-1 networks for financial applications.
Circle also emphasized that while Arc will be deeply embedded into its ecosystem, its services will continue to support and interoperate with other blockchains. The move aligns with a broader industry trend toward bespoke chains built for specialized financial use cases, signaling Circle’s intent to expand beyond issuing USDC into providing the underlying rails for global stablecoin adoption.
The Arc public testnet is expected to go live in the fall, with a full mainnet launch to follow after testing and regulatory review.
Circle will host a conference call to discuss the results for the second quarter 2025 on August 12, 2025 at 8:00 am ET. Circle’s Investor Relations website at https://investor.circle.com will provide access to the live webcast, as well as a replay of the call and transcript shortly following earnings.