Circle to Launch EVM-Compatible Blockchain With USDC as Gas Token

U.S.-publicly-listed company and issuer of USDC stablecoin, Circle, has announced plans to launch a new Layer-1 blockchain later this year. Circle introduced the blockchain, called Arc, in its Q2 2025 earnings report, published today. According to the announcement, Arc is an EVM-compatible blockchain built for enterprise-grade stablecoin payments, capital markets use cases, and foreign exchange (FX).  Upcoming Launch  Expected to launch in public testnet this year, the L1 blockchain will be integrated across Circle’s services and platforms. In addition, Arc will be interoperable with other blockchains that Circle supports.  Notably, the blockchain will utilize Circle’s native stablecoin, USDC, as its official gas token. This implies that Arc users will be paying transaction fees in USDC when making stablecoin payments.  Moreover, Circle’s blockchain is equipped with enhanced features like sub-second settlement finality, an integrated stablecoin FX engine, and opt-in privacy controls. Meanwhile, the announcement noted that the public testnet of the blockchain will go live starting this fall or September 2025. However, the leading stablecoin issuer did not disclose when the mainnet version of the Arc blockchain will make its debut.  Circle’s Q2 2025 Report  Circle's announcement of Arc follows its financial report for the second quarter of the 2025 fiscal year. According to the report, Circle recorded a 53% YoY spike in total revenue and reserve income in the last quarter, reaching $658 million.  Despite experiencing revenue growth, Circle also reported a net loss of $482 million. The company attributed the net loss to the large non-cash expenses totaling $591 million from its Initial Public Offering (IPO) conducted in June.  At the time, Circle claimed it raised $1.2 billion from the IPO, with the stock (CRCL) later going live on the New York Stock Exchange (NYSE) at $69. Following its launch, CRCL’s price skyrocketed to $292.8, marking its all-time high.  However, the stock has lost a significant chunk of its value ever since. At the current price of $161.39, the stock is up 3.99% over the past day but has dropped 44.99% from its previous ATH.  Meanwhile, Circle’s USDC remains the second-biggest stablecoin in the market, boasting a valuation of $65.62 billion. Notably, Ethereum is the dominant blockchain of USDC, hosting $42.6 billion of the stablecoin’s supply.