Circle Internet Group Reports 53% Revenue Rise and Plans Layer-1 Blockchain Launch

Circle Internet Group, the issuer of the USD Coin (USDC) stablecoin, reported a 53% year-over-year increase in revenue for the second quarter of 2025, totaling $658 million. This growth was primarily driven by a 90% surge in USDC circulation, which reached $61.3 billion by the end of the quarter. Despite the revenue uptick, the company posted a net loss of $482 million, largely due to non-cash charges associated with its June initial public offering (IPO). Additionally, Circle announced plans to launch Arc, a new Layer-1 blockchain designed for stablecoin payments and financial applications.

The substantial increase in USDC circulation underscores the growing adoption of stablecoins in the financial ecosystem. Circle's strategic initiatives, including the development of Arc, position the company to capitalize on this trend, despite facing competitive pressures and regulatory challenges.

Founded in 2013, Circle Internet Group has evolved into a major player in the digital currency and blockchain technology sector. The company is best known for issuing USDC, a stablecoin pegged to the U.S. dollar. In June 2025, Circle completed its IPO, raising $1.2 billion and valuing the company at $6.9 billion.

In the second quarter of 2025, Circle's total revenue and reserve income grew 53% year-over-year to $658 million. This growth was primarily driven by a 90% increase in USDC circulation, which reached $61.3 billion by the end of the quarter and further increased to $65.2 billion by August 10, 2025. Despite the revenue growth, the company reported a net loss of $482 million, significantly impacted by IPO-related non-cash charges totaling $591 million. These charges included $424 million for stock-based compensation and a $167 million adjustment to the fair value of convertible debt.

Following the earnings report, Circle's stock experienced significant volatility. Shares rose approximately 7% in pre-market trading, reflecting investor optimism about the company's revenue growth and strategic initiatives. As of August 12, 2025, Circle's stock is trading at $163.21, with an intraday high of $189.12 and a low of $149.58.

Circle announced the forthcoming launch of Arc, an open Layer-1 blockchain designed for stablecoin payments, foreign exchange, and capital markets applications. Arc will be Ethereum Virtual Machine (EVM)-compatible, use USDC as its native gas token, and feature a built-in stablecoin foreign exchange engine. The public testnet for Arc is expected to go live in the fall of 2025.

The recent enactment of the GENIUS Act, which establishes a federal regulatory framework for payment stablecoins, has provided a more defined legal landscape for companies like Circle. This legislation is expected to facilitate partnerships with banks, fintech firms, and payment providers, potentially accelerating the adoption of USDC in mainstream financial applications.

Circle's USDC is the second-largest stablecoin globally, accounting for approximately 26% of the dollar-backed stablecoin market, behind Tether's USDT, which holds about 67%. In Q2 2025, Tether reported a profit of $4.9 billion with a circulating supply of $157 billion in USDT, indicating that Circle has significant ground to cover to match its primary competitor.

The rapid growth of USDC circulation and the development of Arc highlight the increasing integration of stablecoins into the financial system. This trend could lead to more efficient cross-border transactions, enhanced financial inclusion, and new opportunities for digital payments. However, it also raises questions about regulatory oversight, financial stability, and the potential displacement of traditional banking services.

Circle's Q2 performance underscores the growing adoption of stablecoins in the financial ecosystem. The company's strategic initiatives, including the launch of Arc, position it to capitalize on this trend, despite facing competitive pressures and regulatory challenges.