Blockchain Arc Debut on L1 Network Simultaneously with Q2 Financial Results by Circle Company
Circle Internet Group, Inc. (NYSE: CRCL) has announced the launch of Arc, a new Layer 1 blockchain for stablecoin payments, foreign exchange, and capital markets applications. This move is described as a defining moment in Circle's journey to deliver a full-stack platform for the internet financial system.
Arc is engineered to provide a faster, more affordable, and more secure environment for businesses and consumers to transact with digital currencies. The blockchain uses USDC as the native gas token and is EVM-compatible, making it an attractive choice for developers.
USDC, the second largest stablecoin, currently makes up $65 billion of the roughly $250 billion in circulation. Circle reported a 90% year-over-year increase in USDC in circulation, reaching $61.3 billion at the end of the second quarter.
Jeremy Allaire, co-founder and CEO of Circle, stated that Circle demonstrated sustained growth and adoption of its platform in the second quarter. Total revenue and reserve income saw a 53% year-over-year increase to $658 million. Adjusted EBITDA grew 52% year-over-year to $126 million.
Allaire mentioned that Circle's successful IPO in June marked a pivotal moment for the broader adoption of stablecoins and the growth of the new internet financial system. The second-quarter earnings report highlights significant growth after a successful $1.2 billion IPO.
Arc offers "sub-second settlement finality" with enterprise-grade security, addressing challenges that have hindered the widespread adoption of stablecoins. The launch of Arc comes alongside a strong second-quarter earnings report for Circle Internet Group, Inc.
A public testnet for Arc is expected to launch in the fall of 2025, providing the first opportunity for developers and the public to experience the new network. Circle has announced that request for testnet access can be made at https://arcnetwork.xyz/.
The public testnet launch will be closely watched by the financial and cryptocurrency industries. There are no search results available indicating who will take over the public testnet release of Arc, the blockchain project by Circle Internet Group, Inc., in fall 2025.
Jeremy Allaire stated there is accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry. The launch of Arc is a testament to Circle's commitment to driving the adoption and growth of stablecoins and the new internet financial system. However, it's important to note that Circle posted a net loss of $482 million, driven largely by $591 million in IPO-related non-cash charges.
