The issuer of USDC, Circle, will launch its private blockchain Arc, a specialized infrastructure for stablecoin finance, as USDC's market capitalization reaches $65.6 billion.
Circle – the issuer of the USDC stablecoin and publicly listed in the U.S. – announced the launch of its private blockchain named Arc, a specialized infrastructure for stablecoin finance, expected to be deployed by the end of 2025. This move comes as USDC's market capitalization reaches $65.6 billion, while the company's Q2 financial report shows a 53% increase in revenue compared to the same period last year.
Arc is positioned as an 'enterprise-grade' platform, compatible with the Ethereum Virtual Machine (EVM) and focused on core areas such as payments, foreign exchange (FX) transactions, and capital market applications. Notably, USDC will serve as the native gas token, allowing transaction fees to be paid directly in stablecoin, removing a significant barrier in the user experience.
With a finality time of under 1 second and privacy control options, Arc aims to provide a high-performance, secure environment that meets the demands of financial institutions.
Data from Circle's Q2 financial report. Source: Circle
This strategy reflects a prominent trend in the industry: large digital asset corporations and traditional financial institutions (TradFi) are developing their own blockchains to control and optimize the ecosystem. Owning private infrastructure allows them to customize features, enhance performance, and shape the user experience according to business objectives. Previously, Stripe was reported to be collaborating with Paradigm to develop the Tempo blockchain, while Robinhood announced a layer-2 blockchain focused on tokenization.
Despite reporting a net loss of $482 million in Q2 – primarily due to one-time costs related to the IPO – Circle still maintains a strong financial position to invest in long-term strategic initiatives like Arc.
The development of a private blockchain alongside the ability to interact with 24 existing partner networks shows that Circle not only wants to expand the use of USDC but also shape a new financial ecosystem where complex transactions are carried out seamlessly, securely, and efficiently on a platform operated by them.
