Circle Launches Arc Blockchain to Transform Stablecoin Market

2025-08-12 17:16

Newsroom

What is Circle's new Arc blockchain, and how does it impact stablecoin payments?

How does Circle's Arc blockchain aim to revolutionize global finance?

Why is Circle investing heavily in its new blockchain technology?

Circle Launches Arc Blockchain to Transform Stablecoin Market — Image source: Unblock Media

Circle introduced its EVM-compatible Arc blockchain on August 12, 2025.
Arc integrates USDC as its native token and offers sub-second settlement finality.

On August 12, 2025, Circle announced the launch of Arc, a new Layer 1 blockchain designed to revolutionize capital markets and stablecoin payment systems. According to reports on August 12 from Cryptopolitan, FXStreet, and Bitcoin.com News, Arc provides a foundational layer for compliant, real-time financial applications worldwide.

Arc leverages USDC, Circle’s dollar-backed stablecoin, as its native token for transactions. The blockchain offers features like an integrated stablecoin foreign exchange engine, sub-second settlement finality, and privacy controls. Furthermore, Arc promotes interoperability between Circle’s ecosystem and other blockchain networks to enable seamless platform integration. The company plans to release a public testnet this fall, marking an important step toward full implementation.

This launch is part of Circle’s broader strategy to create a comprehensive platform for internet-based finance. Arc builds on Circle’s existing suite of blockchain and stablecoin services and aligns with the company’s Circle Payments Network (CPN). Circle introduced CPN in May 2025 to enable cross-border payments among financial institutions using regulated stablecoins like USDC and EURC. According to Circle, more than 100 financial institutions are preparing to join this real-time settlement network.

Circle unveiled Arc alongside its Q2 earnings report, its first since the company's Initial Public Offering (IPO) in June 2025. The company posted a 90% year-over-year increase in USDC circulation and a 52% growth in adjusted EBITDA. However, Circle also reported a net loss for the quarter, citing non-cash charges related to the IPO. These results underscore the growing momentum in stablecoin adoption and enterprise blockchain solutions.

According to CoinMarketCap, as of August 12 at 17:08 UTC, USDC is trading at $1, with its 24-hour volume changing by 0.018%. Meanwhile, EURC is trading at $1.065 as of 17:09 UTC, experiencing a -0.414% change in 24-hour volume.