The network will be compatible with the Ethereum Virtual Machine and developed as an “enterprise-grade” solution
Circle, the USDC stablecoin issuer and publicly traded US company, plans to roll out its own layer-1 blockchain called Arc before the end of the year. The network will be compatible with the Ethereum Virtual Machine and is positioned as an “enterprise-grade” solution for stablecoin transactions, foreign exchange, and capital markets activities.
Arc will debut on a public testnet and use USDC as its native gas token, meaning transaction fees can be paid directly with the stablecoin. Circle says the blockchain will integrate tightly with its existing platform while remaining interoperable with the 24 other networks that currently support USDC. The network is expected to feature sub-second settlement times, a built-in stablecoin foreign exchange engine, and optional privacy controls.
The announcement came alongside Circle’s Q2 earnings report, which showed a 53% year-over-year rise in total revenue and reserve income to $658 million. However, the company posted a $482 million net loss for the quarter, largely due to $591 million in non-cash expenses tied to its June IPO. That included $424 million in stock-based compensation and $167 million from the increased fair value of convertible debt following a surge in the company’s share price.
Circle’s stock debuted on the New York Stock Exchange at $69 per share, climbed to $292.80 later in June, and has since retreated to $161.20. The company’s market data shows USDC’s current supply at $65.6 billion, with Ethereum hosting $42.6 billion of that total.
The Arc initiative comes during a wave of blockchain launches from major players in both crypto and traditional finance. Stripe is reportedly building its Tempo blockchain with Paradigm, Robinhood has rolled out a layer-2 network for tokenization, and Shopify recently added USDC payment support through Coinbase’s Base network.
Circle’s move signals a stronger push into proprietary infrastructure, aiming to capture a bigger share of the payment and financial services market built on blockchain rails.
