Circle to Launch 'Arc' as New Layer 1 Blockchain for Stablecoins
Circle’s announcement details Arc, an enterprise-grade, EVM-compatible layer 1 blockchain with sub-second settlement and robust native features, alongside impressive Q2 financial metrics.
Circle Internet Group announced the launch of Arc, an enterprise-grade, EVM-compatible layer 1 blockchain designed for stablecoin payments, foreign exchange, and capital markets. The platform, which uses USDC as its native gas and integrates a stablecoin FX engine with sub-second settlement and opt-in privacy, is set for a public testnet this fall. Circle’s Q2 earnings report revealed USDC circulation surpassed $61 billion, a 90% year-over-year increase, with total revenue up 53% to $658 million, despite a net loss of $482 million driven by IPO-related charges.
- Layer 1 Blockchain: A foundational blockchain network that processes transactions independently and serves as the base for decentralized applications.
- Stablecoin: A cryptocurrency pegged to a stable asset such as the US dollar to minimize price volatility.
- EVM-compatible: Describes blockchains that support Ethereum Virtual Machine standards, allowing the deployment of Ethereum-based smart contracts and decentralized applications.