Circle To Launch New Layer-1 Blockchain for Stablecoin Payments

Circle, a publicly listed U.S. company known for its USDC stablecoin, has revealed plans to launch a new layer-1 blockchain later this year.

Circle’s New Blockchain for Stablecoin Payments

In a latest press release, Circle announced Arc, a new Layer-1 blockchain, designed to provide an “enterprise-grade foundation” for stablecoin payments, foreign exchange, and capital markets applications. ”

The EVM-compatible network uses USDC as its native gas and includes an integrated stablecoin FX engine, sub-second settlement finality, and optional privacy controls for users. Arc will be fully integrated across Circle’s platform and remain interoperable with other partner blockchains. The company plans to launch a public test version of Arc this fall. 

Circle called this blockchain “purpose-built” for stablecoin finance, marking a defining moment in its journey to deliver a “full-stack platform” for the internet financial system.

Q2 Revenue Hits $658M, USDC Circulation Rises To $65B

The company recently posted its Q2 results with strong growth. Its USDC in circulation soared 90% year-over-year to $61.3 billion by the quarter’s end and climbed even higher to $65.2 billion by August 10, 2025. The total revenue and reserve income also jumped 53% year-over-year, reaching $658 million.

It also reported a net loss of $482 million, mainly due to $591 million in non-cash expenses related to its June IPO.

Jeremy Allaire, Circle’s CEO, praised the company’s strong Q2 growth and successful IPO, calling it a key milestone for both Circle and the wider stablecoin industry.

Circle’s Major Milestones and Partnerships Boost Growth

Circle achieved major milestones this year.

It completed a successful $1.2 billion IPO and, in May, launched its Payments Network, a cutting-edge platform that enables over 100 financial institutions to use stablecoins for payments.

In July, Circle launched Gateway on testnet, enabling instant USDC access across blockchains, with no bridging or moving funds needed. It is also expanding with new partnerships across digital assets, banking, payments, and capital markets, including big names like Binance, Corpay, FIS, Fiserv, and OKX.

The stablecoin market is growing fast, especially after President Trump signed the GENIUS Act into law. The new law sets clear federal rules for payment stablecoins in the U.S., giving the industry a big boost. 

The total stablecoin market is currently over $282 billion.