Circle debuts stablecoin payments platform Arc amid second quarter earnings release
- Circle announces the introduction of Arc, an open Layer-1 blockchain for enterprise-grade stablecoin payments.
- Arc builds on Circle Payments Network, launched in May, with over 100 financial institutions in the pipeline.
- Circle's second quarter revenue and reserve income increased 50% to $658 million amid 90% growth in USDC supply to $61.3 billion.
Circle (CRCL) has announced its second quarter results for the fiscal year 2025, its first earnings release since its Initial Public Offering (IPO) in June. The growth of its USDC stablecoin circulating supply by 90% YoY to $61.3 billion stood out alongside the launch of Arc, a Layer-1 blockchain protocol.
Circle introduces Layer-1 blockchain Arc
Circle announced the launch of Arc, a Layer-1 blockchain protocol tailored to offer an enterprise-grade platform for stablecoin payments, currency and capital markets.
Arc is an Ethereum Virtual Machine (EVM)-compatible blockchain utilizing USDC as the native gas fees token. Additionally, the protocol features an integrated stablecoin FX engine, sub-second settlement finality and opt-in privacy controls.
Circle plans to integrate Arc across its product suite and services, ensuring interoperability with dozens of other partner blockchains ahead of the public test launch this fall.
Arc builds on the launch of Circle Payments Network, an innovative platform designed specifically to cater to institutional stablecoin payments needs in May. Circle highlighted that over 100 institutions are expected to sign up for the payment network.
Circle's second quarter performance
Circle reported that its USDC circulating supply grew by 90% YoY to $61.3 billion by the end of the second quarter, in addition to a 6.4% increase to $65.2 billion as of Sunday.
Its total revenue and reserve income grew 53% YoY to $658 million, while the net loss averaged at around $482 million, citing IPO-related non-cash charges amounting to $591 million.
"I'm proud of Circle's performance in the second quarter, our first as a public company, where we demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners," Circle's co-founder and CEO, Jeremy Allaire, said during the earnings call.
Circle highlighted the signing of the GENIUS Act into law as a significant milestone for the United States (US) crypto industry. The GENIUS Act establishes a federal regulatory framework for stablecoins, ensuring consumer protection while supporting innovation and the integration of the digital asset economy and the traditional finance system.
"This is an extraordinary moment for our company and industry, and we are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry," Allaire added.
Circle completed its $1.2 billion IPO in June, offering 39.1 million shares. The company successfully sold 19.9 million of the total number of primary shares of Class A common stock at an average price of $31 per share.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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