The US-listed company and USDC stablecoin issuer Circle announced that it will launch an Ethereum Virtual Machine (EVM) compatible Layer 1 (L1) blockchain later this year.
The company released its second-quarter performance on Tuesday and announced the launch of Arc—a new network designed to provide an "enterprise-grade foundation" for stablecoin payments, foreign exchange, and capital market applications.
Circle's Arc is expected to go live on a public testnet, using USDC as its native gas token, allowing users to pay transaction fees with the stablecoin.
Alongside the launch of Arc, Circle disclosed that its total revenue and reserve income for the second quarter increased by 53% year-on-year, reaching $658 million.
According to Circle, the upcoming Arc blockchain is "built specifically for stablecoin finance," marking a significant milestone in the company's mission to achieve an "internet financial system full-stack platform."
The announcement stated that in addition to using USDC as native gas, Arc will also offer an integrated stablecoin foreign exchange engine, sub-second settlement finality, and optional privacy controls, adding:
As of the time of writing, the market capitalization of USDC is $65.6 billion, and the stablecoin operates across a total of 24 networks.
According to Circle's data, Ethereum is currently the largest network for USDC, with a total supply of USDC on the network reaching $42.6 billion.
In its quarterly financial performance report, Circle mentioned that its net loss for the second quarter reached $482 million—a significant increase of 93% compared to approximately $33 million in the fourth quarter of 2024.
The company noted that the net loss for the second quarter was primarily impacted by Circle's initial public offering (IPO) costs, which involved $591 million in non-cash expenses related to the IPO.
These expenses specifically included $424 million in stock compensation related to vesting conditions, as well as a $167 million increase in the fair value of convertible debt due to the rise in Circle (CRCL) stock price.
After raising $1.05 billion in the IPO, Circle began trading publicly on the New York Stock Exchange on June 5, with an issuance price of $69 per share.
According to TradingView data, the stock experienced a rapid surge shortly after its listing, soaring to an all-time high of $292.8 on June 23.
Since then, the stock has been losing momentum, closing at $161.2 on Monday, down over 21% in the past 30 days.
Circle's Arc announcement marks a growing trend of major cryptocurrency industry companies and traditional financial institutions launching new blockchain networks.
On Monday, Fortune reported that fintech giant Stripe is collaborating with cryptocurrency venture capital platform Paradigm to build a new blockchain network called Tempo.
In late June, the crypto-friendly trading app Robinhood officially announced the launch of a tokenization-focused Layer 2 (L2) blockchain.
Previously, global e-commerce company Shopify launched early access to USDC stablecoin payments on Coinbase's L2 network Base in mid-June.
Related: SharpLink Gaming's stock price fell after announcing a $400 million Ethereum (ETH) buyback plan.
Original: “USDC issuer Circle to launch new Layer 1 blockchain Arc this year”
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