According to Circle, Arc will be an enterprise-grade, EVM-compatible blockchain supporting payments, foreign exchange, and capital markets use cases.
Circle is currently the second-largest stablecoin issuer, with USDC making up $65 billion of the roughly $260 billion total dollar-pegged stablecoin market. The company’s move into operating its own blockchain comes as other major issuers explore similar strategies.
The announcement coincided with Circle’s second-quarter financial results. The company reported that USDC in circulation increased 90% year-over-year to $61.3 billion, with an additional 6.4% growth bringing the total to $65.2 billion as of August 10.
Total revenue and reserve income grew 53% year-over-year to $658 million, while other revenue , including subscription, services, and transaction income, rose 252% year-over-year.
“We demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners,” Allaire said, adding that the IPO has accelerated global interest in building on stablecoins and collaborating with Circle.
The company also emphasized the importance of the recent enactment of the GENIUS Act, signed into law by President Trump. The legislation establishes a federal regulatory framework for payment stablecoins, setting compliance standards for issuers.
By launching Arc, Circle seems to be aiming at expanding its role beyond issuing USDC to directly operating blockchain infrastructure tailored for stablecoin settlement and related financial services.
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