- Circle launches the Arc blockchain with USDC as its native gas token.
- Circle’s revenue in Q2 rose 53% to $658 million, but a net loss of $482 million was reported.
- USDC supply has increased to $65.6 billion, including $250 million newly minted.
Circle, the issuer of the USDC stablecoin, has announced the launch of its own Layer-1 blockchain, Arc, even as the company reported strong revenue growth alongside a sizable quarterly loss.
The move marks a significant step in Circle’s ambition to build a full-stack platform for digital finance, while also highlighting the financial challenges shown in its first earnings report since going public.
Circle’s Q2 revenue rises, but losses deepen
In its second-quarter 2025 results released Tuesday, Circle reported total revenue and reserve income of $658 million, a 53% year-over-year increase.
Revenue growth was driven by higher USDC adoption, increasing subscription revenues and greater activity across decentralized finance platforms.
Despite the revenue jump, Circle recorded a net loss of $482 million for the quarter.
The company attributed much of that loss to non-cash, one-off charges related to its high-profile public listing earlier this year, including $424 million in stock-based compensation and a $167 million revaluation of convertible debt.
Adjusted EBITDA rose 52% to $126 million, indicating operational strength despite the overall loss.
Arc blockchain aims to redefine stablecoin-powered finance
Circle’s newly announced Arc blockchain will be compatible with the Ethereum Virtual Machine (EVM) and will use USDC as its native gas token.
This means users will be able to pay transaction fees directly with the stablecoin, a feature designed to streamline on-chain payments and reduce friction for both institutional and retail users.
Arc is built for high-performance financial applications, offering sub-second settlement, an integrated stablecoin currency engine and opt-in privacy controls.
Circle says the network will be fully integrated into its existing platform while remaining interoperable with the 24 partner blockchains where USDC already operates.
USDC stablecoin market share continues to rise
USDC’s market capitalization stood at $65.6 billion at the time of the announcement, with $42.6 billion of that supply on Ethereum, according to a recent report from Circle.
Circle disclosed that USDC in circulation grew 90% year-over-year to $61.3 billion at the end of Q2 and had since risen further to $65.2 billion as of August 10.
We just reported our Q2 2025 earnings, our first as a publicly traded company.
USDC in circulation reached $61.3B at the end of Q2, up 90% YoY, with $5.9T in onchain volume during Q2.
Read the results here: https://t.co/a6fwiWoTNK pic.twitter.com/lgTOOTIEAq
— Circle (@circle) August 12, 2025
Recently, blockchain monitor Whale Alert recorded a $250 million USDC mint to Circle’s treasury.
Such a large issuance often signals rising demand from both institutional and retail investors, injecting liquidity into exchanges and DeFi protocols.
This influx of capital can act as a catalyst for trading activity and broader market growth.
Circle’s strategic positioning in a competitive sector
By launching Arc, Circle positions itself to capture a larger share of the stablecoin-driven payments and capital markets segment.
The combination of a growing USDC supply and an internal blockchain tailored to financial use cases could strengthen Circle’s influence within the global digital asset ecosystem.
The expansion also underscores Circle’s long-term bet that stablecoins will become the backbone of international finance.
With clearer regulatory momentum in key jurisdictions and rising adoption of digital dollar solutions, the company aims to leverage its brand trust and market presence for a deeper role in global transactions.
However, the substantial Q2 loss serves as a reminder of the costs associated with scaling in a competitive and highly regulated industry.
As Arc moves toward a public testnet later this year, traders and institutions will watch closely to see whether Circle can convert strong revenue growth into sustained profitability while cementing USDC’s role at the center of digital finance.