Circle Unveils Arc: A USDC-Powered EVM Layer 1 Blockchain for Capital Markets & Payments

Circle has launched Arc, a new ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain tailored for capital markets and stablecoin payments. The protocol will utilize USDC as its native token, targeting efficient cross-border transactions and forex operations with sub-second settlement. A public testnet is expected this fall.

CEO Jeremy Allaire highlighted Circle's recent IPO as a strategic milestone for stablecoin adoption. USDC circulation grew 90% YoY, surpassing $61 billion in Q2. Despite a $482 million loss—mainly from non-cash IPO expenses—Circle reported $658 million in revenue (up 53%) and $126 million in adjusted EBITDA (up 52%).

Arc will integrate with Circle's ecosystem, featuring opt-in privacy and cross-chain interoperability. Allaire positioned the launch as foundational for enterprise-grade financial infrastructure, bolstering USDC's 28% stablecoin market share.