Circle Debuts Layer-1 Blockchain Arc Using USDC for Native Gas
Circle Internet Group, Inc. (NYSE: CRCL) has unveiled Arc, an open Layer-1 blockchain designed specifically for stablecoin finance, marking what the company calls a “defining moment” in its step toward developing a full-stack internet financial platform.
The announcement came alongside Circle’s fiscal Q2 2025 results, which highlighted substantial growth in its core business. Circle reports USDC in circulation surged 90% year-over-year to $61.3 billion, reaching $65.2 billion as of August 10, 2025. Total revenue and reserve income grew 53% to $658 million, while adjusted EBITDA climbed 52% to $126 million.
The company posted a net loss of $482 million, primarily due to $591 million in non-cash charges tied to its June IPO. That offering raised $1.2 billion, with 19.9 million newly issued shares sold at $31 each, generating $583 million in net proceeds.
CEO Jeremy Allaire describes the IPO as a “pivotal moment” not only for Circle but for the broader adoption of stablecoins, noting accelerating interest from global financial institutions and internet companies.
Introducing Arc: Purpose-Built for Stablecoin Finance
Arc represents Circle’s most ambitious infrastructure initiative to date. Built as an enterprise-grade blockchain, Arc will support stablecoin payments, foreign exchange, and capital markets applications.
The EVM-compatible network uses USDC as its native gas token and features an integrated stablecoin FX engine, sub-second settlement, and opt-in privacy controls.
Planned for public testnet launch this fall, Arc will be fully integrated with Circle’s existing platform and interoperable with dozens of partner blockchains.
Allaire explains Arc will offer “a foundation for the next generation of internet finance,” giving developers and institutions purpose-built tools for stablecoin-based commerce.
Payment Capabilities
The Arc announcement follows the May launch of the Circle Payments Network, a platform allowing financial institutions to send and receive stablecoin payments.
Circle reports more than 100 institutions are in the onboarding pipeline. Partnerships span digital asset platforms, banking providers, and payment processors, including Binance, Corpay, FIS, Fiserv, and OKX.
Circle is making a push to embed USDC more deeply into global payment flows, cross-border transactions, and capital markets infrastructure. Allaire stressed that stablecoins are moving beyond niche crypto use cases into “every significant sector of the financial industry.”
Vision for the Internet Financial System
With Arc, Circle said it aims to close the gap between stablecoin adoption and the infrastructure needed for large-scale, compliant, and efficient use.
By making USDC the native gas token and integrating foreign exchange functionality directly into the blockchain layer, Circle is positioning Arc as a ready-made environment for enterprises that want speed, stability, and regulatory clarity.
“Our goal is to deliver a full-stack platform for the internet financial system,” Allaire said. “Arc is a key piece of that vision, and we believe it will accelerate the shift to a stablecoin-powered global economy.”
Circle Launches Native USDC and CCTP V2 on Hyperliquid
In July, Circle announced that its native USDC and Cross-Chain Transfer Protocol (CCTP) V2 will soon launch on Hyperliquid, a trading platform designed for decentralized finance.
In a blog post, the firm reports a surge in Hyperliquid’s total assets under management (AUM), which recently topped $5.5 billion, up from under $4 billion earlier this month.
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