Fresh off the back of its blockbuster $1.2 billion IPO in June, Circle unveiled plans for its own stablecoin-focused Layer 1 blockchain, Arc, on Tuesday, expected to launch on public testnet this fall.
The EVM-compatible chain is designed to provide an enterprise-grade foundation for stablecoin payments, FX, and capital markets applications, according to a press release.
Arc will use USDC as native gas, include a stablecoin FX engine, sub-second settlement, and opt-in privacy, while fully integrating with Circle’s platform and maintaining interoperability with other partner blockchains, the firm said.
Circle is the second-largest stablecoin issuer, accounting for $65 billion of the approximate $260 billion total U.S. dollar-pegged stablecoin supply, per The Block’s data dashboard.
Circle isn’t the only stablecoin issuer interested in stablecoin-focused blockchains, with market leader Tether actively involved in the development and support of two such projects: Stable and Plasma.
Circle reports Q2 financial results
The news comes amid the release of Circle’s second-quarter financial results on Tuesday.
In Q2, USDC in circulation grew by 90% year-over-year to $61.3 billion, with an additional 6.4% growth to $65.2 billion by August 10. Total revenue and reserve income increased by 53% to $658 million. Other revenue surged 252% year-over-year, reflecting strong growth in subscription, services, and transaction revenue.
Despite this growth, the company reported a net loss of $482 million, primarily due to $591 million in IPO-related non-cash charges, including $424 million in stock-based compensation and $167 million from the increase in the fair value of convertible debt. Adjusted EBITDA grew 52% year-over-year to $126 million.
“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,” Circle co-founder, CEO, and Chairman Jeremy Allaire said.
“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,” he added. “This is an extraordinary moment for our company and industry, and we are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry, with major internet companies and commercial engagement all around the world.”
Circle also highlighted the importance of the GENIUS Act being signed into law by President Trump last month, establishing a federal regulatory regime for payment stablecoins. “Circle’s long-standing commitment to regulatory compliance was largely codified by the obligations of GENIUS, which strengthens Circle’s position as the leading regulated stablecoin issuer,” the firm said.
Circle’s stock is up 6.2% in pre-market trading on Tuesday following the news, according to TradingView.
CRCL/USD price chart. Image: TradingView.
Circle will host a conference call to discuss the results for the second quarter of 2025 at 8:00 a.m. ET on Tuesday.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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