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Circle Unveils Layer-1 Blockchain Arc, Reports $428 Million Q2 Loss
Circle's Q2 financials showed $658 million in revenue, but a net loss of $482 million due to non-cash IPO-linked items.
Aug 12, 2025, 12:00 p.m.
What to know:
- Circle posted a second-quarter loss of $482 million, revenue of $658 million.
- The company announced Arc, a new layer-1 blockchain designed for "stablecoin payments, FX, and capital markets applications."
- Circle said its USDC stablecoin saw a 90% year-over-year surge in circulation and $5.9 trillion in on-chain transaction volume, with its market share rising to 28%.
Circle (CRCL) reported a second-quarter net loss even as circulation of the second-largest stablecoin, USDC, almost doubled from the year-earlier period and on-chain transaction volume more than quintupled to $5.9 trillion.
The company also said it is developing a layer-1 blockchain “designed to provide an enterprise-grade foundation for stablecoin payments, FX, and capital markets applications.” A public testnet for the Arc blockchain is scheduled to live in the next few months.
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Arc is Ethereum Virtual Machine (EVM)-compatible and uses USDC as its native gas token, has an integrated stablecoin FX engine, and sub-second settlement finality along with “opt-in privacy controls,” the company said.
Circle’s is not the first stablecoin-focused blockchain on the blocks. Others include Plasma, which drew over $373 million in an oversubscribed token sale, and Stable, focused on USDC's larger rival, Tether's USDT. Payments company Stripe is reportedly also building its own stablecoin-focused chain, called Tempo.
In its first quarter as a publicly traded company, Circle said USDC’s share of the stablecoin market rose to 28%. Total revenue and reserve income increased 53% to $658 million, driven by higher average USDC balances. The company posted a net loss of $482 million, largely due items related to the June IPO. Earnings before interest, tax, depreciation and amortization (Ebidta) rose 52% to $126 million, the company said.
Interest in the $270 billion stablecoin sector has been accelerating after President Donald Trump signed the GENIUS Act into law. The act bolstered the industry by creating a federal regulatory framework for payment stablecoins in the U.S.
Shares of Circle rose 6.35% to $171.41 in pre-market trading.
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USDC Issuer Circle Secures Abu Dhabi's ADGM License in Middle East Expansion
The license allows Circle to expand USDC payment and settlement tools across the United Arab Emirates.
What to know:
- Circle has obtained a Financial Services Permission license from Abu Dhabi Global Market, allowing it to operate as a Money Services Provider in the UAE.
- The stablecoin issuer has appointed Dr. Saeeda Jaffar, former manager at payments firm Visa.
- The approval comes as part of the UAE's emergence as a global hub for regulated digital assets, following similar licenses granted to Binance.
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