Blockchain Arc Launched on L1 by Circle Simultaneously with Q2 Financial Results

In a significant move, Circle Internet Group, Inc. (NYSE:CRCL) has announced the launch of Arc, a new Layer 1 blockchain designed for stablecoin payments, foreign exchange, and capital markets applications. This development comes as a defining moment in Circle's journey to deliver a full-stack platform for the internet financial system.

According to Jeremy Allaire, Circle's co-founder and CEO, the company has demonstrated sustained growth and adoption of its platform. The second-quarter earnings report highlighted significant growth after a successful $1.2 billion IPO for Circle Internet Group, Inc., with total revenue and reserve income seeing a 53% year-over-year increase to $658 million.

Arc is engineered to be an "enterprise-grade foundation" for the future of finance. It offers "sub-second settlement finality" with enterprise-grade security, making it an attractive solution for various industries. The new blockchain uses USDC as the native gas token and is EVM-compatible, ensuring seamless integration with existing Ethereum-based applications.

Jeremy Allaire described Circle's successful IPO in June as a pivotal moment for the broader adoption of stablecoins and the growth of the new internet financial system. USDC, the second largest stablecoin, makes up $65 billion of the roughly $250 billion in circulation.

Circle has granted early access to the public testnet of the new Arc Layer-1 blockchain to select companies and institutions, including crypto projects, developers, and strategic partners. This allows them to experience the network before the full mainnet launch, which is expected in the fall of 2025. This will be the first opportunity for developers and the public to experience the new network.

The launch of Arc came alongside a strong second-quarter earnings report for Circle Internet Group, Inc. However, the company reported a net loss of $482 million, driven largely by $591 million in IPO-related non-cash charges. Despite this, Adjusted EBITDA grew 52% year-over-year to $126 million.

Allaire stated there is accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry. Arc is specifically designed to address key challenges that have hindered the widespread adoption of stablecoins. Information about the timeline for the full mainnet launch will be closely watched by the financial and cryptocurrency industries.

For more details about Arc's features and benefits, interested parties can request testnet access at Arc's official website. The information about Arc was provided in a press release. Circle's announcement of Arc marks an exciting step forward in the company's mission to shape the future of finance.