Circle to Launch Layer-1 Network Arc, Q2 Revenue Jumps 53% YoY

The stablecoin issuing company, Circle, has released its financial report for the second quarter of the year, revealing plans to launch an open layer-1 network named Arc.

According to a press release from the firm, the public testnet for Arc will be released this fall. The blockchain will be an Ethereum Virtual Machine (EVM)-compatible, enterprise-grade platform for stablecoin payments. Arc’s capabilities will not be restricted to just stablecoins, but will encompass foreign exchange and capital markets applications.

Circle Unveils Layer-1 Arc

Circle says its flagship stablecoin, USD Coin (USDC), will serve as the native gas currency on Arc. The blockchain will have an integrated foreign exchange engine, sub-second settlement finality, and opt-in privacy controls. Circle will incorporate the network across its platforms and services, expanding Arc’s reach to partner blockchains.

The new network represents a major step in Circle’s journey to delivering a full-stack platform purpose-built for stablecoin finance. Other entities like the payment processing platform, Stripe, are also developing a layer-1 blockchain, named Tempo. As revealed on Monday, Tempo will be a payments-focused blockchain. Stripe has partnered with the crypto venture capital firm Paradigm to bring the vision to life.

Arc’s development comes shortly after Circle went public. The initial public offering (IPO), which took place in early June, raised $1.2 billion with Circle offering 39.1 million shares. The entity also launched the Circle Payments Network in May to enable institutions to use stablecoins for payments. Throughout Q2, the company expanded its network to include partnerships across the banking, payments, and capital markets industries.

The firm formed alliances with crypto exchanges like Binance and OKX, payment services entities like Corpay, Fidelity Information Services (FIS), and Fiserv.

53% YoY Revenue Growth

Moving on, Circle’s total revenue and reserve income grew 53% year-over-year (YoY) to $658 million. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 52% YoY to $126 million. Net loss totaled $482 million, significantly affected by IPO-related non-cash charges.

It is worth mentioning that the circulating USDC supply rose 90% YoY to $61.3 billion. This figure had increased by an additional 6.4% to $65.2 billion as of August 10.

Circle’s co-founder and CEO, Jeremy Allaire, said: “ 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.”

Meanwhile, the company will host a conference call for the Q2 results on August 12 at 8:00 am ET. Investors can access the live webcast here.

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