Stablecoin issuer Circle plans to launch the Arc Layer 1 blockchain, which is core to stablecoins and compatible with the Ethereum Virtual Machine (EVM), expected to go live on a public testnet this fall.
According to a press release, the Arc blockchain aims to provide enterprise-grade infrastructure for stablecoin payments, foreign exchange, and capital market applications, using its own dollar stablecoin USDC as the native Gas token, and featuring a stablecoin foreign exchange engine, sub-second settlement, optional privacy features, while being fully integrated with the Circle platform and maintaining interoperability with other partner blockchains.
Circle is not the only issuer interested in stablecoin dedicated chains. Market leader Tether is currently also actively involved in the development and support of two similar projects, namely Stable and Plasma.
Circle announces its Q2 financial report
As news of the construction of a proprietary blockchain emerges, Circle announces its Q2 financial report. Its USDC circulation increased by 90% year-on-year to $61.3 billion and further grew by 6.4% to $65.2 billion as of August 10. Total revenue and reserve income increased by 53% year-on-year to $658 million; other income surged by 252%, indicating strong growth in subscription, service, and trading revenues.
Despite the company's business growth, Circle still recorded a net loss of $482 million this quarter, primarily due to $591 million in non-cash expenses related to the IPO, which includes $424 million in stock-based compensation and $167 million in costs arising from the increase in the fair value of convertible bonds. Adjusted EBITDA increased by 52% year-on-year to $126 million.
Circle co-founder, CEO, and Chairman Jeremy Allaire stated: "I am proud of Circle's performance in Q2; this is our first quarter as a public company, and we have demonstrated continued growth and adoption across a diverse range of industry partners and use cases."
"Circle's successful IPO in June was a pivotal moment, not only for our company but also for the broader adoption of stablecoins and the growth of new network financial systems." He added, "This is an extraordinary moment for our company and the entire industry; we are seeing a rapid increase in interest from major network companies and various sectors of the financial industry regarding stablecoin-related infrastructure and collaboration with Circle."
Circle also emphasized the significance of last month's signing of the GENIUS Act by President Trump, which established a federal regulatory framework for payment stablecoins. The company stated: "Circle's long-standing commitment to compliance has been formally written into regulations under the obligations set forth by GENIUS, further solidifying our position as a leading regulated stablecoin issuer."
According to data from TradingView, after the news release, Circle's stock price (ticker: CRCL) surged about 16% in pre-market trading on Tuesday but retraced after the opening, finally closing at $163.21, up about 1.27%.
Circle is the second-largest stablecoin issuer globally, with a market share of 24% for its USDC. The leading Tether has a market share of 60%, with its USDT market capitalization reaching $164.8 billion.
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