TLDR
- Circle is exploring the launch of a native token for its Arc Network to foster adoption and network growth.
- The Arc Network, launched in August, currently uses USDC as its gas token but could switch to the native token.
- The Arc Network’s testnet went live in late October, with over 100 companies participating.
- Circle reported a 66% increase in revenue for Q3, totaling $740 million compared to the previous year.
- Circle’s net income surged by 202% to $214 million in Q3, recovering from a loss in the prior quarter.
Circle, the issuer of USDC, has unveiled plans to launch a native token for its Arc Network. The company revealed this during the release of its Q3 earnings, showing increased net income year-over-year (YoY). Circle’s move could drive further adoption of the Arc Network and strengthen its stakeholders’ interests.
Circle Announces Native Token for Arc Network
Circle is exploring the potential launch of a native token for its Arc Network. The company aims to foster network participation and align the interests of its stakeholders. According to the announcement, this step would help drive long-term growth for the network.
The Arc Network, launched in August 2025, focuses on enabling stablecoin payments. At that time, Circle revealed that USDC would be used as the network’s gas token. However, the introduction of a native token could change this arrangement.
The Arc Network is currently live on its testnet, which went operational on October 28. Over 100 companies have joined the testnet, including leading institutions like capital markets firms, banks, and asset managers. Circle aims to enhance its network’s adoption as it prepares to scale the project.
Circle reported a 66% increase in revenue, reaching $740 million in Q3. This growth reflects a year-over-year rise in both total revenue and reserve income. The company’s net income surged by 202%, from a net loss in Q2 to a profit of $214 million.
The firm also reported a 78% increase in adjusted EBITDA, which reached $166 million. This marks a recovery from Circle’s $482 million loss in the previous quarter. As a result, Circle’s financial performance indicates strong momentum in the crypto and stablecoin sectors.
USDC in circulation also grew by 108% YoY, reaching $73.7 billion. Circle’s USDC is now the second-largest stablecoin, just behind Tether’s USDT. The growing adoption of USDC supports the company’s ambitions for expanding the Arc Network.
Circle’s partnerships with firms like Visa, Brex, Deutsche Börse, and Hyperliquid have boosted its presence in the market. These collaborations help increase the use of USDC across different industries and geographies. Circle continues to expand its reach, enhancing its product offerings and ecosystem.
USDC Tokenization and Global Expansion
Circle’s tokenized money market fund, USYC, grew by over 200% between June 30 and November 8. The fund now holds nearly $1 billion, reflecting strong investor confidence. Circle’s payment network also facilitates transactions across eight countries, with 29 financial institutions involved.
The company’s network has seen a substantial increase in transaction volume, with an annualized rate of $3.4 billion. This growth demonstrates the increasing demand for Circle’s services, particularly its USDC stablecoin. Circle’s focus on expanding its network further solidifies its position in the crypto ecosystem.
Despite this growth, Circle’s stock saw a decline in premarket trading following the release of its earnings. According to TradingView data, CRCL traded at around $94, marking a drop of over 4% from the previous day. The decline comes amid increasing competition in the stablecoin market.
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