Circle Internet Group (NYSE:CRCL) has announced plans to launch Arc, a new enterprise-focused Layer 1 blockchain purpose-built for stablecoin payments, foreign exchange, and capital markets applications.

The announcement was made alongside the company's second-quarter 2025 earnings release.

Arc will be EVM-compatible, with USDC as its native gas token and a built-in stablecoin FX engine.

It will offer sub-second settlement finality, optional privacy features, and full integration with Circle's existing platform.

A public testnet is expected to go live in fall 2025.

The launch comes as Circle reported USDC circulation of $61.3 billion at the end of Q2, a 90% year-over-year increase, with current circulation at $65.2 billion as of August 10.

Total revenue and reserve income rose 53% to $658 million for the quarter, though the company posted a net loss of $482 million, driven largely by $591 million in IPO-related non-cash charges.

Adjusted EBITDA grew 52% year-over-year to $126 million.

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The second quarter marked Circle's first as a publicly traded company following its $1.2 billion IPO in June, which CEO Jeremy Allaire called "a pivotal moment" for both the company and broader stablecoin adoption.

Arc will be part of Circle's broader strategy to expand the role of stablecoins in mainstream finance.

The company said the network will integrate seamlessly with its existing infrastructure and remain interoperable with dozens of partner blockchains.

Other highlights from the quarter include the launch of the Circle Payments Network, early adoption of Circle Gateway for instant cross-chain liquidity, and expanded partnerships with Binance, FIS, Fiserv, Corpay, and OKX.

Circle also pointed to the recent enactment of the GENIUS Act, which establishes a federal regulatory regime for payment stablecoins, as a milestone that strengthens its position as a regulated issuer.

"Arc is a defining moment in our journey to deliver a full-stack platform for the internet financial system," Allaire said. "We are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry."

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