Stablecoin issuer Circle has announced the upcoming launch of its Layer-1 blockchain, Arc, and has formed a strategic partnership with digital asset custody platform Fireblocks to provide first-day network access to over 2,400 financial institutions. This move not only marks a significant breakthrough for Circle in the blockchain technology field but also injects new momentum into the ecosystem expansion of its dollar-backed stablecoin, USDC. Meanwhile, Circle raised $1.05 billion through its initial public offering (IPO), with USDC issuance surging by 90% to reach $65 billion, further solidifying its position in the global stablecoin market. However, facing Tether's 60% market dominance, Circle's rise adds new pressure to the stablecoin competition.
Arc Blockchain: Fireblocks Empowers Institutional Access
Arc, as Circle's self-developed Layer-1 blockchain, plans to launch a public testnet in the fall of 2025, with the mainnet expected to go live by the end of the year. Fireblocks, a digital asset custody platform headquartered in New York, serves over 2,400 banks, asset management firms, and fintech companies, supporting more than 120 blockchains. This collaboration allows Fireblocks' clients to trade on the first day of Arc's launch, benefiting from custody and compliance tools.
Fireblocks' early integration provides significant advantages for Arc. In contrast, other blockchain projects like Solana only gained Fireblocks support more than a year after their launch. Fireblocks' involvement not only enhances Arc's institutional accessibility but also lays the foundation for gaining a first-mover advantage in the competitive blockchain market.
Circle's IPO and Financial Performance
The launch of Arc is part of a series of strategic initiatives by Circle. On June 5, 2025, Circle raised $1.05 billion through its IPO, marking the first public offering for a stablecoin issuer. Its stock opened at $69, peaked at $298.99, and closed at around $145, reflecting strong market confidence in its prospects.
Circle's second-quarter financial report was also impressive, with revenue reaching $658 million, a 53% year-on-year increase. Meanwhile, USDC issuance reached $65 billion in early August, a 90% year-on-year increase. On the same day, Circle launched the Circle Payment Network, further expanding its digital payment services, aiming to provide users with more efficient and convenient payment solutions.
Stablecoin Market: Intensifying Competition
According to DefiLlama data, the global stablecoin market continues to grow rapidly, with the total market capitalization rising from $253.87 billion in July 2025 to $277.16 billion in August. USDC holds about 25% of the fiat-backed stablecoin market, ranking second. However, Tether continues to lead with a 60% market share, reporting a profit of $4.9 billion in the second quarter of 2025, primarily due to the returns from holding $127 billion in short-term U.S. Treasury bonds. As a result, Tether has become one of the largest non-sovereign holders of U.S. Treasuries, surpassing countries like South Korea and the UAE.
Despite Tether's dominance, Circle is continuously expanding its ecosystem influence through the Arc blockchain, payment network, and institutional partnerships, bringing new competitive pressure to the stablecoin market.
New Trends in the Blockchain Field
The launch of Arc comes at a time when fintech companies are accelerating their efforts in the blockchain space. In June 2025, Stripe announced a partnership with Paradigm to develop the Layer-1 blockchain Tempo, focusing on payments and asset issuance. In the same month, Robinhood launched a Layer-2 network focused on asset tokenization. The emergence of these new projects indicates that fintech companies are driving innovation in payments, stablecoin trading, and real-world asset (RWA) tokenization through dedicated blockchain networks.
Circle's Arc blockchain, in collaboration with Fireblocks and leveraging the widespread use of USDC, is poised to occupy a significant position in this wave. Its strategic focus on the institutional market not only enhances the accessibility of blockchain technology but also provides a new model for the integration of traditional finance and digital assets.
Through the launch of the Arc blockchain, the rapid growth of USDC issuance, and the success of its IPO, Circle demonstrates its ambition in the digital finance sector. The partnership with Fireblocks further lowers the barriers for institutions to enter the blockchain market, enhancing Arc's competitiveness. However, in the face of Tether's strong market position and the continuous emergence of blockchain projects, Circle needs to maintain its efforts in technological innovation, regulatory compliance, and market expansion.
As the global stablecoin market and blockchain technology rapidly develop, Circle's strategic layout lays a solid foundation for securing a place in the future digital finance ecosystem. For institutional investors, the launch of Arc not only provides new trading and custody opportunities but also signals greater possibilities for the integration of blockchain and traditional finance.
The ongoing expansion of Circle's Arc blockchain and the USDC ecosystem marks significant progress for stablecoins and blockchain technology within the global financial system. Through its collaboration with Fireblocks, Circle provides over 2,400 institutions with convenient access to the digital asset market while also offering a reference for the construction of digital asset centers in places like Hong Kong. In the future, as more fintech companies join the blockchain field, competition in the stablecoin market will intensify, and Circle's innovative strides will undoubtedly inspire new developments in the industry.
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