Circle - a US-listed company and the issuer of USDC stablecoin - has just announced plans to launch its own layer-1 (L1) blockchain, compatible with Ethereum Virtual Machine (EVM), expected to be deployed this year.
In the second quarter financial report released on Tuesday, Circle introduced Arc, a new network designed as an "enterprise-level" platform for stablecoin payments, foreign exchange transactions, and applications in the capital market. The public testnet version of Arc is expected to be launched in the fall. Notably, USDC will become the native token used for transaction fees, allowing users to pay fees directly with the stablecoin they hold.
Circle stated that revenue and reserve income in the second quarter reached $658 million, a 53% increase compared to the same period last year. This is an impressive result in a volatile cryptocurrency market.
Arc - Circle's Strategic Move
According to Circle, Arc is "built specifically for stablecoin finance", with the goal of creating a comprehensive platform for the internet financial system. This network not only integrates a stablecoin exchange engine but also supports processing speeds under one second, optional security capabilities, and interoperability with dozens of partner blockchains that Circle supports.
Currently, USDC has a market capitalization of around $65.6 billion and operates on 24 networks. Ethereum remains the largest network for USDC, with a total supply of $42.6 billion, according to Circle's data.
Circle's launch of Arc occurs in a context of global economic shift towards digital payment infrastructure. After President Donald Trump takes office again from early 2025, the new US administration has introduced more open policies towards domestic blockchain companies, encouraging innovation and keeping technology capital within the US. This is seen as a significant opportunity for companies like Circle to expand services and capture international market share.
