Circle Unveils Arc Layer-1 Blockchain Following $5.9T USDC Quarter & 2 Earnings Report
Key Takeaways:
Arc Launch: Circle announces the launch of Arc, a scalable, secure, and EVM-compatible Layer-1 blockchain built with an API-based interface to stablecoin payments, FX and capital market applications that is powered by USDC as the native gas token.
Growth: USDC in circulation ended Q2 2025 at $61.3B, 90% more than in Q2 2024, with over $5.9 trillion of on-chain transactions.
IPO Momentum: After a successful $1.2B IPO and collaborations with Binance, FIS, OKX and others, Circle is promoting Arc as the foundation of worldwide digital settlement.
Circle is targeting the restructuring of the financial infrastructure of the internet with Arc, a purpose-built blockchain paying special attention to the stablecoin economy. It was announced alongside the company releasing its first earnings report as a publicly traded company as it showed a record setting quarter in USDC adoption and transaction volumes.
Read More: $1.05B IPO: What CircleS Historic NYSE Listing Means for the Future of Crypto
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Arc: A Dedicated Blockchain for Stablecoin Finance
Arc is not another blockchain, it is indeed a financial-grade Layer-1 network focused specifically at stablecoin-powered use cases.
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Features of key design are:
Legacy gas: USDC is used to pay every transaction fee in the flagship stablecoin of Circle.
Pre-written FX engine: simplified cross-currency stablecoin swaps.
Pre-built capital markets: tools for tokenized securities.
* Permissioned privacy: allowing for confidential transactions.
“We are building Arc to be the settlement layer for the internet,” said Circle CEO Jeremy Allaire in a press release. “Arc will be the foundation for a new generation of financial applications, and we are excited to partner with developers and businesses to bring these innovations to life.”
Arc is currently in a limited preview and is expected to be fully launched in the coming months. Circle believes that Arc has the potential to revolutionize the way that financial transactions are conducted online, and to make the global financial system more efficient, clear, and accessible.
Circle Reports Strong Q2 2024 Growth Driven by USDC Adoption and Arc Progress
Circle, a leading global financial technology company and the issuer of USDC, reported significant growth in the second quarter of 2024, fueled by increasing adoption of its stablecoin and progress on its Arc blockchain infrastructure. CEO Jeremy Allaire described the quarter as “a defining moment” for both Circle and the stablecoin ecosystem, noting accelerating interest in building on USDC across banking, payments, and capital markets.
Key Financial Highlights:
USDC Circulation: $61.3 billion, a 90% increase year-over-year https://www.circle.com/blog/q2-2024-circle-update
On-chain Transaction volume: $5.9 trillion in Q2 2024.https://www.circle.com/blog/q2-2024-circle-update
Revenue and Reserve Income: $658 million, up 53% year-over-year. https://www.circle.com/blog/q2-2024-circle-update
Adjusted EBITDA: $126 million, up 52%. https://www.circle.com/blog/q2-2024-circle-update
Expanding Partnerships for Global Reach
Circle has been actively forging strategic partnerships to broaden the utility and accessibility of USDC.Recent collaborations include:
Binance: Enhancing liquidity and global reach for USDC. https://www.circle.com/blog/q2-2024-circle-update
FIS and fiserv: Integrating USDC into major payment processing networks. https://www.circle.com/blog/q2-2024-circle-update
* OKX and Corpay: Driving adoption in cryptocurrency trading and cross-border settlements. https://www.circle.com/blog/q2-2024-circle-update
In May, Circle launched the Circle Payments Network, designed to enable banks and financial institutions to utilize stablecoins for instant payments. The company reports over 100 institutions are currently in the pipeline for integration. https://www.circle.com/circle-payments-network
Arc: Building the Foundation for the Next Generation of Financial Infrastructure
Circle is positioning Arc as a core infrastructure layer for the future of internet finance. Arc aims to provide a 24/7 settlement network for stablecoin transactions, comparable in speed and ease of use to sending a message online. The blockchain leverages the Malachite consensus engine to deliver speed, security, and interoperability, particularly for institutional users. https://www.circle.com/arc
Arc will be open-sourced under a permissive license, encouraging developers to build financial products on the platform.Circle believes this approach will accelerate adoption across both decentralized finance (DeFi) and customary finance, possibly blurring the lines between the two. The combination of Arc’s development, USDC’s growth, and Circle’s strategic partnerships signals a concerted effort to establish a dominant position in the stablecoin layer of the internet economy.