Circle to launch Arc, a layer 1 blockchain for stablecoins

Key Takeaways

• Circle is launching Arc, a Layer 1 blockchain focused on stablecoin payments and capital markets.
• Arc will use USDC as its native gas token and aims to enable compliant, instant cross-border transactions.

Circle Internet Group has announced plans to launch Arc, a new Layer 1 blockchain designed specifically for stablecoin payments, foreign exchange, and capital markets applications. The announcement came alongside the company’s second-quarter earnings report today.

Arc is set to be enterprise-grade and EVM-compatible, with USDC as its native gas and a built-in stablecoin FX engine. It will deliver sub-second settlement finality, opt-in privacy features, and full integration with Circle’s platform, with a public testnet slated for launch this fall.

Circle reported USDC circulation surpassed $61 billion in Q2, up 90% year-over-year. The company’s total revenue and reserve income grew 53% to $658 million, while posting a net loss of $482 million, largely due to IPO-related non-cash charges totaling $591 million.

This is a developing story.