Circle, the issuer of USDC, announced it will launch its own Arc blockchain later this year. The network will be Ethereum Virtual Machine (EVM) compatible and use USDC as its native gas token.
The announcement came in Circle’s Q2 2025 results on Tuesday. The company said Arc will debut in public testnet before its official rollout. Users will be able to pay transaction fees directly with USDC on Arc.
Alongside the Arc blockchain news, Circle Q2 results showed a 53% year-over-year increase in total revenue and reserve income, reaching $658 million.
Arc Blockchain to Support Stablecoin Transactions
Circle described the Arc blockchain as designed for stablecoin-based finance. It will include an integrated stablecoin foreign exchange engine, sub-second settlement finality, and opt-in privacy controls.
Arc will connect directly to Circle’s platform and services and remain compatible with the 24 networks currently supporting USDC. According to Circle, Arc will work alongside existing blockchain integrations instead of replacing them.
Circle said:
“Arc will be fully integrated across Circle’s platform and services, which will also remain fully available and interoperable with the dozens of other partner blockchains that Circle supports.”
USDC Market Cap and Network Distribution
At the time of the announcement, USDC market cap stood at $65.6 billion. The stablecoin operates across 24 networks, according to Circle data.
Ethereum network hosts the largest share, with $42.6 billion in total USDC supply. Other supported blockchains include major ecosystems such as Solana and Avalanche, as well as smaller chains.
Circle continues to manage USDC reserves in a combination of cash and short-term U.S. Treasuries, maintaining the stablecoin’s $1 peg on all supported platforms.