The USDC ($1.00) issuer revealed these plans on November 12, 2025, when it released quarterly financial results. Circle’s revenue hit $740 million in Q3 2025, marking a 66% increase from Q3 2024.

Arc Blockchain Gains Major Company Support

Circle launched its Arc public testnet in October 2025. The blockchain network focuses specifically on stablecoin transactions and payments. Over 100 major companies joined the testing phase, including Goldman Sachs, BlackRock, and Visa.

Arc operates as a layer-1 blockchain built for enterprise use. Unlike other blockchains that handle many different digital assets, Arc specializes in stablecoins like USDC. The network promises transaction speeds under one second and can process up to 10,000 transactions per second with fewer validators.

The blockchain uses USDC as its gas token, meaning users pay transaction fees with the stablecoin instead of volatile cryptocurrencies. This setup appeals to businesses that want predictable costs for blockchain operations.

Source:@Jerallaire

Circle’s potential native token would serve a different purpose than USDC. According to the company’s Q3 earnings statement, the token could “foster network participation to drive adoption, further align the interests of Arc stakeholders, and support the long-term growth and success of the Arc network.”

Strong Financial Performance Drives Expansion

Circle’s third-quarter results showed significant growth across key metrics. Net income reached $214 million, up 202% year-over-year. This included a $61 million income tax benefit related to stock-based compensation and research tax credits. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 78% to $166 million.

USDC circulation grew dramatically to $73.7 billion by the end of Q3, representing 108% growth compared to Q3 2024. On-chain transaction volume exploded to $9.6 trillion, marking a 6.8x increase from the previous year.

Reserve income, which makes up most of Circle’s revenue, jumped 60% year-over-year to $711 million. This growth came primarily from the 97% increase in average USDC circulation, though it was partially offset by a 96 basis point decline in reserve return rates.

However, operating costs also rose significantly. Distribution and transaction costs increased 74% to $448 million, mainly due to higher USDC circulation and strategic partnerships. Operating expenses climbed 70% to $211 million, driven by a 14% workforce expansion and higher employee compensation.

Payments Network Shows Rapid Growth

Circle’s Payments Network, launched in May 2025, demonstrated strong adoption. The network now operates in eight countries with 29 financial institutions enrolled. Another 55 institutions are going through eligibility reviews, while 500 more sit in the pipeline.

Since launching just five months ago, the payments network achieved remarkable growth. Annualized transaction volume reached $3.4 billion based on trailing 30-day activity as of November 7, 2025. This represents significant growth from the network’s early operations.

The network’s expansion reflects growing institutional interest in blockchain-based payment infrastructure. Major partnerships announced since Q2 include collaborations with Brex, Deutsche Börse Group, Finastra, Fireblocks, Hyperliquid, Kraken, and Visa.

Market Position and Future Guidance

Circle raised its 2025 guidance following the strong Q3 performance. The company increased its “Other Revenue” forecast to $90-100 million, primarily due to higher subscription and services revenue. Circle also expects its Revenue Less Distribution Cost margin to hit approximately 38%, at the high end of previous guidance.

USDC’s market share continued expanding in 2025. The stablecoin’s share of total stablecoin circulation increased from 23% in Q3 2024 to 29% in Q3 2025. Its share of transaction volumes grew even more, jumping from 30% to 40% during the same period.

The company’s tokenized money market fund, USYC ($1.11), showed exceptional growth. The fund expanded over 200% from June 30 to November 8, 2025, reaching approximately $1 billion in assets under management.

Circle also benefited from regulatory clarity around stablecoins. The GENIUS Act, passed in 2025, created the first federal framework for payment stablecoins in the United States.

Arc Timeline and Technical Details

Arc will follow a phased rollout schedule. The network entered private testing in late 2025, with public testing occurring this fall. Circle plans the full mainnet launch for 2026.

The blockchain uses a consensus mechanism called Malachite, developed by Informal Systems. Circle acquired the Malachite team to help build and maintain the network. The core software will be released under an open-source license.

Arc integrates with Circle’s existing product suite, including USDC, EURC ($1.16), and various payment services. The network supports Ethereum Virtual Machine compatibility, allowing developers to use familiar tools and programming languages.

The blockchain includes built-in privacy features that let users hide transaction amounts while keeping addresses visible. This appeals to enterprises that need confidential payment processing while maintaining regulatory compliance.

The Bottom Line

Circle’s combination of strong financial performance and strategic blockchain development positions the company for continued growth. The potential Arc native token represents an evolution in Circle’s approach as it builds infrastructure for institutional blockchain adoption. With over 100 companies testing Arc and robust Q3 results, Circle appears well-positioned to capitalize on growing demand for enterprise-grade stablecoin infrastructure.