Circle, the issuer of the USDC stablecoin, has announced the launch of its own layer-1 (L1) blockchain named Arc. This development comes as USDC has experienced a significant growth of 90% year-over-year in Q2 2025. Arc is designed to be compatible with the Ethereum Virtual Machine (EVM) and aims to establish an “enterprise-grade foundation” for applications related to stablecoin payments, foreign exchange, and capital markets. The blockchain is expected to launch its public testnet in the fall of 2025 and will use USDC as its native gas token. Along with this announcement, Circle reported a 53% increase in total revenue and reserve income for Q2, amounting to $658 million. Arc will feature an integrated stablecoin foreign exchange engine, fast settlement finality, and privacy controls. Circle has emphasized that Arc will fully integrate with its existing platform and services while remaining interoperable with numerous partner blockchains. As of now, USDC has a market capitalization of approximately $65.6 billion, with Ethereum hosting the largest share of USD, totaling $42.6 billion.

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