#Circle is preparing to launch its own Arc blockchain with $USDC as the native token for gas payments—a solution that could radically change the landscape of stablecoins.

The issuer of the second-largest stablecoin has introduced its layer-1 network, compatible with #Ethereum Virtual Machine (EVM), which is expected to go live in a public testnet later this year. Arc is positioned as the 'corporate foundation' for stablecoin payments, currency operations, and capital market applications.

Payment of fees with stablecoin

The main feature of Arc is the use of #USDC as the native gas token. No more conversions to $ETH or other cryptocurrencies for transaction payments. Users will be able to directly use their USDC to pay for transactions on the network. Makes sense? More than that.

The network promises an integrated engine for currency operations with stablecoins, settlement completion in less than a second, and detailed privacy settings. Circle emphasizes that Arc will be fully integrated with their platform, remaining compatible with dozens of other partner blockchains.

At the time of the announcement, the market capitalization of USDC was $65.6 billion, and the stablecoin was operating in 24 networks. Ethereum remains the largest network for USDC with a volume of $42.6 billion.

Financial rollercoaster after IPO

Circle's quarterly results appear contradictory. On one hand, total revenue and reserve income grew by 53% year-on-year, reaching $658 million. On the other hand, net losses amounted to $482 million, which is 93% higher than $33 million in the fourth quarter of 2024.

The reason for such dramatic losses is the costs associated with the initial public offering (IPO). The company incurred $591 million in non-cash expenses related to the listing, including $424 million in stock-based compensation and $167 million in fair value growth of convertible debt due to the increase in Circle's stock price (CRCL).

Circle is building a 'full-fledged platform for the internet financial system,' and Arc is becoming a key element of this puzzle. The company bets that control over the infrastructure will give it an edge in the race for dominance in the hundreds of billions of dollars stablecoin market.