Circle, the company behind USDC stablecoin, has revealed plans to launch Arc, a new layer-1 blockchain compatible with Ethereum Virtual Machine (EVM), later this year. Arc was created as an enterprise-grade foundation for stablecoin payments, foreign exchange, and capital markets. USDC will function as the native gas token, allowing users to pay transaction fees using the stablecoin.
The forthcoming network will include sub-second settlement finality, integrated stablecoin FX, and opt-in privacy restrictions. Arc will be completely integrated into Circle's platform while staying interoperable with the many blockchains that support USDC.
Circle's Q2 report reported a 53% growth in revenue and reserve income year on year, totaling $658 million. However, the company reported a net loss of $482M. $591M losses are IPO-related non-cash expenses, such as stock compensation and convertible debt valuation revisions.
Circle debuted on the NYSE in June, rising to a high of $292.8 before settling at around $161 recently. Arc's launch contributes to a growing crypto and TradFi trend, as companies such as Stripe and Robinhood develop new blockchain networks centered on stablecoins and tokenization.
