Circle, the issuer of USDC, has launched its own L1 blockchain called ARC. It was created to work with stable cryptocurrencies and is fully EVM-compatible. USDC serves as the main token for paying fees on the network.
The platform is equipped with a built-in stablecoin exchange mechanism (FX engine) and enables transaction confirmation in less than a second. Privacy features are also available. ARC will be integrated with Circle’s products to create a unified financial environment.
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Accelerating digital dollarization
Circle CEO and co-founder Jeremy Allaire called the launch of ARC a strategic step toward creating a global financial platform for the internet. This blockchain is intended to serve as a foundation for stablecoin payments, currency transactions, and capital market infrastructure. It aims to connect traditional finance with Web3 while offering compatibility with other networks with enterprise-grade reliability.
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USDC financial results and growth
In the second quarter of 2025, the volume of USDC in circulation increased by 90% compared to the previous year, reaching $61.3 billion. The company’s interest income from reserve assets rose 53% to $658 million. Adjusted EBITDA* rose 52% to $126 million.
*EBITDA is a financial measure that stands for Earnings Before Interest, Taxes, Depreciation and Amortization.
Despite a net loss of $482 million due to one-time costs related to IPO preparations, the results demonstrate strong and stable demand for stablecoins. USDC’s market share remained at 28%, solidifying its position as one of the largest stablecoins in the world.
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Partnerships and development
Circle is expanding its partnerships with key market players, including Binance, FIS, Fiserv, OKX, and Corpay. These partnerships aim to enable seamless payment services, increase liquidity, and meet strict compliance requirements.
In May 2025, the company launched the Circle Payments Network (CPN), which has already opened four international payment corridors. By the end of the year, more than 100 financial institutions are expected to be connected to the network. In July, a new tool called Circle Gateway was introduced, which provides instant cross-liquidity for USDC and significantly reduces the cost of transfers between blockchains.
IPO and regulation
In June 2025, Circle successfully completed its IPO, raising $1.2 billion, placing nearly 20 million Class A shares and net proceeds of $583 million. The launch of the ARC blockchain was synchronized with the passage of the GENIUS Act in the United States, which introduced the first federal framework for regulating stable cryptocurrencies. According to analysts, this move will accelerate the integration of the digital dollar into the banking sector and the DeFi environment.
Next steps
The public ARC testnet is scheduled for late 2025, with full launch to follow immediately after testing is complete. Circle expects the project to increase the interoperability of financial systems and provide developers and businesses with a reliable foundation for stablecoin-based products.
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