- Circle launches Arc blockchain with USDC as native gas token.
- Circle’s Q2 revenue up 53% to $658M, but $482M net loss reported.
- USDC supply has surged to $65.6B, including $250 million minted.
Circle, the issuer of the USDC stablecoin, has announced the launch of its own layer-1 blockchain, Arc, even as it posted strong revenue growth alongside a hefty quarterly loss.
The move marks a major step in the company’s ambition to become a full-stack platform for digital finance, while also highlighting the financial challenges of 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 a 53% year-over-year increase in total revenue and reserve income, reaching $658 million.
The revenue growth was fueled by a surge in USDC adoption, expanding subscription service revenues, and increased activity across decentralised finance platforms.
Despite the revenue jump, Circle posted a $482 million net loss for the quarter.
The company attributed this to one-time, non-cash expenses linked to its blockbuster IPO 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, showing operational strength despite the headline loss.
Arc Blockchain aims to redefine stablecoin finance
The company’s newly announced Arc blockchain will be compatible with the Ethereum Virtual Machine (EVM) and use USDC as its native gas token.
This means users will be able to pay transaction fees directly with the stablecoin, a move aimed at streamlining on-chain payments and lowering friction for institutional and retail users.
Arc is designed for high-performance financial applications, with sub-second settlement, an integrated stablecoin foreign exchange engine, and opt-in privacy controls.
Circle says the network will be fully integrated into its existing platform while remaining interoperable with the 24 other partner blockchains where USDC already operates.
USDC stablecoin market share keeps climbing
USDC’s market capitalisation 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 by Circle.
Circle has revealed that USDC circulation grew 90% year-over-year to $61.3 billion by the end of Q2 and has since climbed 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
Adding to this momentum, Whale Alert recently flagged a $250 million USDC mint at the USDC Treasury.
Such large-scale issuance often points to increasing demand from both institutions and retail investors, injecting liquidity into exchanges and DeFi protocols.
This influx of capital can serve as a catalyst for trading activity and broader market growth.
Circle’s strategic positioning in a competitive sector
By launching Arc, Circle is positioning itself to capture more of the stablecoin-powered payments and capital markets segment.
The combination of its growing USDC supply and an in-house blockchain tailored for financial use cases could strengthen its influence in the global digital asset ecosystem.
The expansion also underscores Circle’s long-term bet that stablecoins will become a backbone of international finance.
With clear regulatory momentum in key jurisdictions and growing adoption of digital dollars, the company is seeking to leverage its brand trust and market presence into a deeper role in global transactions.
However, the sizable Q2 loss serves as a reminder of the costs of scaling in a competitive and highly regulated industry.
As Arc heads toward public testnet later this year, traders and institutions will be watching closely to see whether Circle can turn its strong revenue growth into sustained profitability, while cementing USDC’s position at the heart of digital finance.
