Circle explores native token for Arc network as Q3 shows sharp growth in USDC supply, profits

Circle said it is “exploring the possibility” of a native token for its Arc blockchain, as the stablecoin issuer disclosed its third-quarter earnings that showed USDC circulation has doubled year over year and profitability has improved.

The NYSE-listed company billed the potential Arc token as part of a broader push to bring more programmable finance onchain.

Circle launched the Arc public testnet for its Layer 1 stablecoin-centric chain on Oct. 28. More than 100 marquee names from traditional finance and crypto, focused on capital markets, banking, payments, and digital assets, joined at launch.

Q3 earnings

In its Q3 earnings released on Wednesday, the stablecoin issuer said total revenue and reserve income reached $740 million, up 66% from a year earlier, while net income rose 202% to $214 million. USDC in circulation ended the quarter at $73.7 billion, up 108% year over year.

Management also lifted its 2025 outlook for “other revenue” to $90–$100 million, up from $75–$85 million, citing subscription, services, and transaction growth.

Circle’s quarter reflected USDC’s acceleration as a payments and market infrastructure rail. “We made huge progress delivering platforms for the world’s leading startups and financial firms, and saw strong growth and market-share gains for USDC,” wrote Circle CEO Jeremy Allaire in an X post.

Reserve income rose 60% year over year to $711 million, driven primarily by a 97% increase in average USDC in circulation to $67.8 billion, partly offset by a lower reserve return rate.

Adjusted EBITDA was $166 million, up 78% year over year, with adjusted operating expenses at $131 million in the quarter.

The firm also highlighted expanding commercial traction for its Circle Payments Network — now supporting flows in eight countries with 29 financial institutions enrolled and 500 more in the pipeline — and noted growth in USYC, its tokenized money market fund, to roughly $1 billion AUM as of Nov. 8.

USDC’s onchain dominance and investor perception

At the same time, Circle’s flagship USDC stablecoin has outpaced Tether’s USDT in onchain growth, according to JPMorgan research cited by The Block last month.

Analysts led by managing director Nikolaos Panigirtzoglou said USDC’s regulated backing, growing integration with exchanges, and adoption in cross-border payment pilots have given it an advantage among institutional users.

A report from William Blair described Circle as the “top stablecoin play” for investors positioning around the $20 trillion global payments market, arguing that USDC could eventually “supplant fiat” as settlement infrastructure for digital trade.

That narrative is further bolstered by Bernstein’s projections, which estimate that USDC’s supply could triple by the end of 2027, capturing roughly one-third of the global stablecoin market.

Bernstein pointed to policy clarity under the GENIUS Act and continued institutional uptake as catalysts.

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