Circle Unveils Arc: EVM-Compatible Blockchain Using USDC as Gas Token
Circle to launch Arc, an EVM-compatible blockchain with USDC as its gas token, targeting enterprise payments and FX markets.
Circle, the U.S.-listed issuer of the USDC stablecoin, has announced the launch of a new Layer-1 blockchain, Arc, designed to integrate deeply with its ecosystem and expand the use of stablecoins in global finance. The news came as part of the company’s Q2 2025 earnings report, signaling a strategic shift toward owning its blockchain infrastructure.
Arc is an EVM-compatible network tailored for enterprise-grade payments, capital markets, and foreign exchange (FX) applications. Set to debut in public testnet this fall, the blockchain will feature sub-second transaction finality, an integrated FX engine for stablecoins, and optional privacy controls. In a notable departure from most blockchains, Arc will use Circle’s own USDC as the gas token, meaning all transaction fees will be paid directly in stablecoins.
According to Circle, Arc will be interoperable with other blockchains already supported by the company, ensuring smooth asset transfers and integration across networks. The public testnet is scheduled for September 2025, although no date has been confirmed for the mainnet launch.
The move comes on the heels of strong top-line growth for Circle. In Q2 2025, the company reported a 53% year-over-year increase in total revenue and reserve income, reaching $658 million. However, it also recorded a net loss of $482 million, largely driven by $591 million in non-cash expenses from its June Initial Public Offering (IPO).
Circle’s IPO raised $1.2 billion, with its shares (NYSE: CRCL) debuting at $69 before soaring to an all-time high of $292.80. Since then, the stock has fallen significantly, trading at $161.39 at the time of the announcement—still up nearly 4% in the past 24 hours but down 45% from its peak.
USDC remains the world’s second-largest stablecoin by market capitalization, valued at $65.62 billion. Ethereum continues to dominate as USDC’s primary host, with $42.6 billion of the supply circulating on the network.
By introducing Arc, Circle is positioning itself at the intersection of blockchain infrastructure and stablecoin utility, aiming to capture a greater share of enterprise transactions and DeFi use cases while giving developers a blockchain purpose-built for stable-value assets.
