- Circle launches Arc blockchain with USDC as native gas token.
- Circle’s Q2 revenue up 53% to $658M, but $482M net loss reported.
- USDC supply has surged to $65.6B, including $250 million minted.
Circle, the issuer of the USDC stablecoin, has announced the launch of its own layer-1 blockchain, Arc, even as it posted strong revenue growth alongside a hefty quarterly loss.
The move marks a major step in the company’s ambition to become a full-stack platform for digital finance, while also highlighting the financial challenges of its first earnings report since going public.
Circle’s Q2 revenue rises, but losses deepen
In its second-quarter 2025 results released Tuesday, Circle reported a 53% year-over-year increase in total revenue and reserve income, reaching $658 million.
The revenue growth was fueled by a surge in USDC adoption, expanding subscription service revenues, and increased activity across decentralised finance platforms.
Despite the revenue jump, Circle posted a $482 million net loss for the quarter.
The company attributed this to one-time, non-cash expenses linked to its blockbuster IPO earlier this year, including $424 million in stock-based compensation and a $167 million revaluation of convertible debt.
Adjusted EBITDA rose 52% to $126 million, showing operational strength despite the headline loss.
Arc Blockchain aims to redefine stablecoin finance
The company’s newly announced Arc blockchain will be compatible with the Ethereum Virtual Machine (EVM) and use USDC as its native gas token.
This means users will be able to pay transaction fees directly with the stablecoin, a move aimed at streamlining on-chain payments and lowering friction for institutional and retail users.
Arc is designed for high-performance financial applications, with sub-second settlement, an integrated stablecoin foreign exchange engine, and opt-in privacy controls.
Circle says the network will be fully integrated into its existing platform while remaining interoperable with the 24 other partner blockchains where USDC already operates.
USDC stablecoin market share keeps climbing
USDC’s market capitalisation stood at $65.6 billion at the time of the announcement, with $42.6 billion of that supply on Ethereum, according to a