Circle posts $428M Q2 loss, launches USDC-powered Arc L1

Published: 2025-08-13 05:09:51 |

Circle reported a $428 million net loss in Q2, driven by one-time IPO expenses, despite revenue and reserve income rising 53% to $658 million and adjusted EBITDA up 52% to $126 million. USDC supply reached $61 billion, up 90% year-on-year, and on-chain transaction volume surged fivefold to $5.9 trillion. Circle also unveiled Arc, its own EVM-compatible Arc L1 blockchain that uses USDC as the native gas token, offers sub-second finality and optional privacy controls. The Arc public testnet is due in autumn 2025. Arc L1 will compete with existing stablecoin chains like Plasma and Tether-backed platforms, as well as Stripe’s upcoming Tempo. Circle’s USDC holds 28% of the global stablecoin market. Partnerships with OKX, FIS and USYC integration support growth, while lower USDC balances on Binance and Coinbase weigh on margins. The launch of the Arc L1 blockchain positions Circle to deepen institutional stablecoin finance across payments, FX and capital markets.

Bullish

The unveiling of the Arc L1 blockchain using USDC as a native gas token, combined with strong Q2 revenue and EBITDA growth, is likely to boost demand for USDC. Short-term traders may react positively to the surge in on-chain transaction volume and market share gains. Long term, wider Arc adoption across payments, FX and capital markets could drive deeper institutional usage of USDC. Although the $428 million net loss reflects one-time IPO costs, it does not affect Circle’s core stablecoin infrastructure potential. Overall, these factors point to a bullish outlook for USDC.