Circle, the US-based issuer of the $65.6 billion USDC stablecoin, is set to launch its own layer-1 blockchain, Arc, later this year. Fully compatible with the Ethereum Virtual Machine, Arc is designed as an “enterprise-grade” platform for stablecoin payments, foreign exchange, and capital markets. The network will feature USDC as its native gas token, allowing transaction fees to be paid directly in the stablecoin.

The company revealed the project alongside its Q2 2025 results, reporting a 53% year-over-year jump in total revenue and reserve income to $658 million. Circle describes Arc as “purpose-built for stablecoin finance,” offering integrated foreign exchange, sub-second transaction finality, and opt-in privacy features. Arc will be deeply integrated into Circle’s ecosystem while maintaining interoperability with 24 other blockchains where USDC operates.

Ethereum remains USDC’s largest network, hosting $42.6 billion in supply. Circle’s aggressive blockchain move mirrors a growing industry trend, with fintech giant Stripe building its own blockchain, Robinhood launching a layer-2 network for tokenization, and Shopify enabling USDC payments via Coinbase’s Base.

Despite the ambitious launch, Circle’s Q2 net loss ballooned to $482 million, largely due to $591 million in non-cash charges from its June IPO. These included $424 million in stock-based compensation tied to vesting and $167 million from convertible debt valuation changes after Circle’s share price surged.

Circle raised $1.05 billion in its IPO, debuting on the NYSE at $69 per share before skyrocketing to $292.8 within weeks. With Arc’s debut set to intensify competition in both crypto and traditional finance, Circle is positioning itself as a full-stack financial infrastructure leader — betting that its stablecoin dominance can fuel the next wave of blockchain adoption.