USDC stablecoin issuer Circle released its Q2 2025 financial report on August 12, and announced the launch of a Layer-1 blockchain called Arc, designed specifically for stablecoin payments, foreign exchange transactions, and capital market applications, aiming to provide efficient and secure enterprise-level blockchain infrastructure.
What is Arc Blockchain?
Circle noted that Arc Blockchain is a Layer-1 blockchain built to meet enterprise-level needs, compatible with the Ethereum Virtual Machine (EVM), and using USDC, issued by Circle, as its native gas token.
The design goal of Arc is to provide an efficient and low-cost transaction environment, with core features including sub-second transaction confirmation speeds, optional privacy controls, and deep integration with Circle's existing products (such as Circle Payments Network, USDC, and EURC). Additionally, Arc will support interoperability with other blockchains to ensure that enterprises can operate seamlessly in a multi-chain ecosystem.
According to Circle's plan, the Arc public testnet is expected to be launched in the fall of 2025, with the mainnet beta version anticipated to go online in 2026. Circle emphasizes that this is expected to attract more financial institutions to adopt Circle's stablecoin and blockchain solutions.
Circle Releases Q2 2025 Financial Report
Regarding Circle's Q2 2025 financial report, the report shows that the circulation of USDC grew by 90% year-on-year, reaching $61.3 billion by the end of June and further increasing to $65.2 billion on August 10. At the same time, Circle's total revenue also grew by 53%, reaching $658 million, exceeding market expectations; adjusted EBITDA increased by 52% to $126 million.
However, due to non-cash expenses related to the IPO, Circle reported a net loss of $482 million, with the vast majority coming from $424 million in stock compensation expenses. Despite the losses, looking forward, Circle expects USDC circulation to maintain a 40% compound annual growth rate, with other revenues expected to reach $75 million to $85 million.
CRCL Pre-market Up 10%
According to Google Finance data, Circle's stock CRCL rose 10% before the U.S. stock market opening, with a pre-market quote of $178, and a temporary market capitalization of $35.8 billion.
