Circle, the US-based publicly traded company behind USDC (USD Coin), the world's second-largest stablecoin by market capitalization, is preparing to launch its own Ethereum Virtual Machine (EVM)-compatible Layer-1 blockchain. The company shared details of this new network, dubbed "Arc," on Tuesday, as it announced its second-quarter (Q2) 2025 financial results.
Arc aims to provide an "enterprise-grade foundation" specifically for stablecoin payments, foreign exchange (FX) transactions, and capital markets applications. According to Circle, Arc is being developed entirely as a USDC-focused infrastructure, with USDC as the network's native gas token. This will allow users to pay transaction fees directly on the network with the stablecoin.
Arc's public testnet launch is planned for this fall. The network will offer an integrated stablecoin exchange engine, sub-second settlement, and optional privacy features. Circle emphasized that Arc will be fully integrated with the company's existing platforms and services, as well as compatible with the 24 different partner blockchains it supports.
Circle Announces Net Loss
According to Circle's financial data, the company's total revenue and reserves increased by 53% year-over-year, reaching $658 million. Other revenue lines saw a remarkable 252% increase, largely driven by growth in subscription, service, and transaction revenue.
USDC supply also gained significant momentum during this period. The supply, which had increased by 90% year-over-year to $61.3 billion, increased by another 6.4% to $65.2 billion as of August 10th. USDC's total market capitalization currently stands at approximately $65.6 billion, with the largest supply ($42.6 billion) held by the Ethereum network.
Despite this, the company reported a net loss of $482 million due to non-cash expenses of $591 million related to the IPO. Of these expenses, $424 million was from stock-based payments and $167 million from fair value increases on convertible debt. Adjusted EBITDA increased by 52% to $126 million.
“The future of stablecoin finance”
Circle CEO and Co-founder Jeremy Allaire stated that the second quarter was a critical period for the company as the first quarter after its IPO. “It’s exciting to see the growing adoption of our platform across different sectors and globally.” Allaire also emphasized that the $1.2 billion IPO, which closed in June, was a turning point in the adoption of stablecoins.
The company also highlighted the GENIUS Act, signed by President Trump last month, which established a federal regulatory framework for payment stablecoins. Circle stated that this legislation legally establishes the compliance standards it has long championed and strengthens its position as a regulated stablecoin issuer. Following these developments, Circle shares rose 6.2% in premarket trading Tuesday.
