CIRCLE LAUNCHES BLOCKCHAIN LAYER1 - Q2 REPORT RELEASE

Recently, my team has been monitoring the continuous large withdrawals of $USDC from CEX, and many are wondering about the reasons behind this, as the withdrawn amount is not being redeemed but remains in crypto. Perhaps this is part of these movements?

1. @circle has just launched ARC - a dedicated EVM-compatible Blockchain Layer1, using USDC as native gas, integrating FX engine for stablecoins, sub-second finality, and privacy options.

- ARC will fully connect with the Circle ecosystem and remains interoperable with other chains. Public testnet is expected in fall 2025.

=> Goal: to become an enterprise-grade stablecoin payment infrastructure for payments, FX, and capital markets.

2. Q2/2025 Report Launch:

- USDC in circulation +90% YoY reaching $61.3B, continuing to rise to $65.2B by 8/8.

- Revenue +53% YoY reaching $658M.

- Net loss of $482M due to IPO costs (total $591M).

- Adjusted EBITDA +52% YoY reaching $126M.

- Successful IPO of $1.2B, expanding partnerships with Binance, OKX, FIS, Fiserv, Corpay.

3. Personal Perspective

- Circle is choosing vertical integration - simultaneously issuing stablecoins while owning blockchain settlement. This allows them to control the entire stack, optimizing speed and costs.

- However, in return, Arc risks becoming a "compliance honeypot" - where all transactions are closely monitored, making it less attractive to purely decentralized DeFi.

- If successful, ARC will turn USDC into the native settlement layer of Internet finance.

- What are your thoughts?