Circle Unveils Arc Blockchain for Financial Services Amid Strong Q2 Earnings

Circle Internet Group has unveiled Arc, a Layer 1 blockchain specifically designed for payments and financial applications. The testnet launch is scheduled for the fall of 2025.

Circle Internet Group, the issuer of the USDC stablecoin, reported its Q2 2025 financial results and announced plans to launch its own blockchain infrastructure, Arc, developed to support scalable and regulated financial services.

The new blockchain will offer high throughput and low transaction fees. Circle positions Arc as a key component of its future financial ecosystem. The blockchain will be optimized for stablecoin operations, using USDC as its native token. Arc will be fully integrated into Circle’s infrastructure and services while maintaining compatibility with dozens of other supported blockchains. The testnet is scheduled for the fall, with a full release expected by the end of the year.

Simultaneously, Circle reported its first financial results following its IPO, which included the following highlights:

• Revenue grew 53% year-over-year to $658.1 million;
• USDC circulation reached $61.3 billion in Q2 2025 and increased to $65.2 billion by August 10;
• Net loss was recorded at $482 million;
• Circle shares rose 7–8% in pre-market and intraday trading but dropped nearly 6% after the announcement of up to 10 million shares being issued;
• The IPO cost totaled $591 million, including $424 million in stock compensation and $167 million for the revaluation of convertible securities;
• Adjusted EBITDA increased 52% to $126 million.

The company also highlighted the launch of the Circle Payments Network and expanded partnerships with Binance, Fiserv, Matera, Corpay, and other market participants.

Last month, Circle filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank.