Blockchain startup Circle introduces Arc, a new Layer-1 network, following the release of quarter 2 USDC earnings report worth $5.9 trillion dollars.
Circle, the company behind the popular stablecoin USDC, has unveiled its new Layer-1 blockchain, Arc. This scalable, secure, and EVM-compatible blockchain is designed specifically for stablecoin-powered use cases, using USDC as the native gas token[1][4][5].
Arc is envisioned as a transformative financial infrastructure platform, simplifying, securing, and accelerating the digital stablecoin economy and global internet finance. It aims to become the "home for stablecoin finance," effectively serving as the new money layer for internet financial services[2][4][5].
One of the key roles of Arc is its native stablecoin gas model. By using USDC as the native gas token, it replaces the usual model of volatile tokens for fees, enabling low, predictable, dollar-denominated costs and reducing friction for users and businesses[1][3][4].
Arc is purpose-built to support stablecoins like USDC, EURC (Euro Coin), and USYC (tokenized US Treasury shares), offering a comprehensive financial stack including payments, foreign exchange, lending, and tokenized securities issuance in partnership with regulated entities[1][2][4].
The blockchain boasts enterprise-grade features such as sub-second transaction finality, high throughput (thousands of transactions per second), optional privacy controls, and a built-in foreign exchange engine enabling institutional trading and on-chain FX settlement 24/7[1][3][4].
Arc is fully Ethereum Virtual Machine (EVM) compatible, allowing developers to use existing programming tools, easing adoption and integration into the evolving multichain ecosystem. It also aims to remain interconnected with over 24 networks supporting USDC today[1][3][4].
Circle has had a successful IPO and collaborations with Binance, FIS, OKX, and others, and the launch of Arc marks a significant step in Circle’s ambition to build a full-stack internet financial system with stablecoins and tokenized real-world assets at its core[4][5].
In Q2 2025, USDC circulation remained at $61.3B, representing a 90% increase from Q2 2024. Over $5.9 trillion of on-chain transactions were made using USDC in Q2 2025. The adjusted EBITDA for Q2 2025 was $126M, up 52%, and revenue and reserve income were $658M, up 53% YoY[1][4][5].
Arc is also compatible with the Ethereum Virtual Machine (EVM), allowing builders to deploy applications without reengineering. It is designed to organize confidential transactions without compromising compliance, and it offers real-time settlement of enterprise-scale financial processes with sub-second finality[1][5].
Circle has formed partnerships with OKX and Corpay for depth adoption in crypto trading and cross-border settlements, and with FIS and Fiserv for pooling USDC into payment processing networks[1][5]. A collaboration with Binance has been established for liquidity and global reach of stablecoins[1][5].
In addition, Arc has been open-sourced under a permissive license, allowing global developers to build financial products on top of it[1][5]. Arc's high-performance consensus engine, Malachite, is also being utilized.
Arc is promoted as the foundation of worldwide digital settlement by Circle, aiming to restructure financial infrastructure and support stablecoins and tokenized assets side-by-side, allowing new financial products like tokenized equities, commodities, real estate, on-chain treasury management, and instant, global payments to flourish on a reliable foundational layer[2][4][5].
- Circle's new Layer-1 blockchain, Arc, uses USDC as the native gas token, replacing volatile tokens for fees to enable low, predictable, dollar-denominated costs.
- Arc is designed to become the "home for stablecoin finance," offering support for stablecoins like USDC, EURC, and USYC, and including a comprehensive financial stack for payments, foreign exchange, lending, and tokenized securities issuance.
- The blockchain boasts enterprise-grade features such as high throughput, optional privacy controls, and a built-in foreign exchange engine enabling institutional trading and on-chain FX settlement 24/7.
- Arc is fully Ethereum Virtual Machine (EVM) compatible, allowing developers to use existing programming tools, and is designed to organize confidential transactions without compromising compliance.
- Circle has formed partnerships with OKX and Corpay for cryptocurrency trading and cross-border settlements, FIS and Fiserv for pooling USDC into payment processing networks, and Binance for liquidity and global reach of stablecoins.
- Arc has been open-sourced under a permissive license, allowing global developers to build financial products on top of it, and uses Circle's high-performance consensus engine, Malachite.
- Arc is promoted as the foundation of worldwide digital settlement, aiming to restructure financial infrastructure and support stablecoins and tokenized assets side-by-side, allowing new financial products like tokenized equities, commodities, real estate, on-chain treasury management, and instant, global payments to flourish on a reliable foundational layer.
