🟧Circle's goal when launching Layer1 - Arc: Is it simply to compete with Tether?

🔶Circle has just announced the launch of Arc - an EVM-compatible Layer 1 blockchain, where USDC officially becomes the gas token, integrating an FX engine system and near real-time settlement capabilities. USDC is set as the central currency, with all transactions, liquidity, and financial communications routed through USDC.

🔶Q2 2025 Circle's financial performance surges thanks to the "tailwind" of an IPO:

- Circulating supply increases by 90% YoY, reaching approximately $61–65B.

- Total revenue from reserves and services reaches $658M, up 53% YoY; Circle retains $251M in profit after distribution costs.

- CRCL shares continue to rise after the financial report, with a current market capitalization of ~$39B (equivalent to ~63% of the circulating USDC value).

🔶Arc launches as an open payment infrastructure under the guise of Layer-1, with USDC becoming the gas for the blockchain as transaction fees, fx swaps, and settlements all use USDC, boosting the demand for USDC.

-> When Arc mainnet goes live, cross-border settlements, payment rails, and stablecoin infrastructure (entirely controlled by Circle) will mean that $USDC will not need to go through any dapp or third-party company, creating a closed ecosystem.

🔶USDC supply rises by 90%, revenue increases by 53%, and company valuation approaches $40B -> Circle is creating a highly attractive datasphere for Arc. It must be acknowledged that Circle's business practices may be poor, but they are very adept at seizing opportunities for an exit.