Stablecoin

Token

USDC

<ul>
 <li>Circle launched Arc blockchain using USDC as a gas token to enable payments and asset tokenization in regulated markets.</li>
 <li>Arc integrates with Circle Payments Network and supports cross chain transfers for faster stablecoin and FX transactions.</li>
 <li>Circle reported USDC circulation growth to 65.2B in August 2025 despite a net loss linked to IPO expenses.</li>
</ul>
<p>Stablecoin issuer Circle has <a href="https://www.businesswire.com/news/home/20250812836620/en/Circle-Reports-Second-Quarter-2025-Results" rel="noopener noreferrer nofollow">launched</a> Arc, an enterprise-grade Layer-1 blockchain. The platform operates on the Ethereum Virtual Machine. USDC will serve as the native gas token for all transactions. Arc integrates with Circle services and supports interoperability with partner blockchains.</p>
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<h2 class="wp-block-heading" id="strong-payment-and-market-applications-strong"><strong>Payment and Market Applications</strong></h2>
<p>The network targets stablecoin payments, foreign currency transactions, and capital market use cases. Its litepaper outlines a capacity of 3,000 transactions per second and settlement speeds under 350 milliseconds using 20 validators. Smaller validator sets could process over 10,000 transactions per second with near-instant settlement.</p>
<p>Arc will include a stablecoin FX engine for low-friction currency swaps. Amounts in confidential transfers will remain hidden, but addresses will be visible. Selective disclosure will be possible through view keys for authorized parties.</p>
<h2 class="wp-block-heading" id="strong-integration-with-circle-s-payments-network-strong"><strong>Integration With Circle’s Payments Network</strong></h2>
<p>Arc will integrate with Circle’s Payments Network, launched in May, which has over 100 financial institutions onboarding. It will connect with the Cross-Chain Transfer Protocol (CCTP) and the Gateway for faster cross-chain transactions. The platform will also host USYC, an interest-bearing stablecoin pegged to short-term US Treasury securities.</p>
<p>Arc will support tokenized real-world assets, including equities, bonds, and private credit. These assets will be fully collateralized and issued by authorized partners.</p>
<h2 class="wp-block-heading" id="strong-market-integrity-and-governance-strong"><strong>Market Integrity and Governance</strong></h2>
<p>Arc will deploy measures to reduce maximal extractable value, including encrypted mempools and batch processing. The governance model will start as permissioned proof-of-stake, later expanding validator numbers. The platform is built for regulated finance, linking traditional institutions with blockchain infrastructure.&nbsp;</p>
<p>It will offer compatible tools for asset issuers, custodians, and fund administrators. The public testnet release is planned between September and December 2025.</p>
<h2 class="wp-block-heading" id="strong-circle-s-financial-update-strong"><strong>Circle’s Financial Update</strong></h2>
<p>In Q2 2025, Circle’s total revenue and reserve earnings rose 53% year-over-year to $658 million. USDC circulation increased by 90% to $61.3 billion by quarter-end and reached $65.2 billion in early August.</p>
<p>The company reported a $482 million net loss, mainly due to $591 million in non-cash charges linked to its IPO. These included $424 million in stock-based compensation and $167 million from convertible debt.</p>
<p>Circle <a href="https://cryptonewsland.com/circle-ipo-likely-to-price-above-marketed-rang/" rel="noopener noreferrer nofollow">completed a $1.2 billion</a> IPO in June, generating $583 million in net proceeds. USDC holds 28% of the fiat-backed stablecoin market. The company minted over $42 billion USDC in the quarter and redeemed $40.8 billion.</p>
<p>Circle also noted the <a href="https://cryptonewsland.com/trump-signs-genius-act-into-law-establishing-first-federal-crypto-rules-in-us/" rel="noopener noreferrer nofollow">passing of the GENIUS Act</a>, creating a federal regulatory framework for stablecoins to enhance consumer protection and support innovation.</p>

Circle Launches Arc Blockchain With USDC Gas Token and Enterprise Payment Integration

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