Circle, the issuer of the USDC stablecoin, has launched its layer-1 blockchain, Arc, following a 53% increase in revenue during Q2 2025. Despite the revenue growth, Circle reported a $482 million net loss, primarily due to non-cash expenses related to its IPO. Arc, which is compatible with the Ethereum Virtual Machine, utilizes USDC as its native gas token, aiming to enhance on-chain payment processes. Circle's USDC circulation saw a significant 90% year-over-year increase, reaching $61.3 billion by the end of Q2. The introduction of Arc is part of Circle's strategy to expand its presence in the stablecoin-powered payments market, even as it navigates financial challenges highlighted in its latest earnings report.