Circle Introduces Native Token for Arc Blockchain as Q3 Profits Surge

Stablecoin issuer Circle, the founding company behind the USDC dollar-pegged stablecoin, is set to introduce a native token for its ARC layer-1 blockchain testnet, which is designed with a focus on enterprise solutions and operates on the Ethereum Virtual Machine (EVM).

Key Takeaways

Circle plans to launch a native token for its Arc blockchain, with notable institutional backing.
Circle reported a substantial Q3 revenue of $740 million, a 66% increase year-over-year.
The rise in costs, particularly for distribution and operations, raises concerns about profitability.
The introduction of app-specific blockchains like Arc reflects growing institutional interest and specific use case applications in the crypto space.

Circle plans native token for Arc blockchain as Q3 profit surges

Circle launched the Arc testnet in October, with notable participation from financial giants such as Goldman Sachs, asset management firm BlackRock, credit card provider Visa, and over 100 other companies in the financial sector.

In a recent earnings report released on Wednesday, Circle revealed its intention to focus gas fees on the Arc network around USDC and other stablecoins.

Circle, Stablecoin _Source:_Jeremy Allaire

According to a statement from Circle, the long-term vision for Arc includes establishing a decentralized governance model through validators distributed across various geographic locations. Cointelegraph attempted to reach Circle for additional comments but had not received a response at the time of publication.

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Circle Reports Impressive Q3 Financial Performance

In addition to its plans for the new token, Circle shared its financial performance for the third quarter of 2025. The company reported a revenue of $740 million, marking a significant 66% increase compared to the same period last year. Circle's net income for Q3 was reported at $214 million, which represents a remarkable 202% year-over-year growth.

However, expenses also increased, specifically distribution and transaction costs, which rose by 74% compared to 2024, totaling $448 million in the last quarter.

Circle, Stablecoin _Circle reports Q3 financial results. Source:_Circle

Additionally, operating costs increased by 70% in Q3, amounting to $211 million. This rise was attributed to a 14% growth in Circle's workforce as well as increased employee compensation. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA)—a crucial metric for publicly traded companies—rose by 78% year-over-year, reaching $166 million for the quarter.

Are Appchains the Future of Crypto and Blockchain?

The launch of the Arc network underscores the increasing engagement of institutional players in the cryptocurrency sector and a trend toward the creation of application-specific blockchain networks tailored for distinct use cases, platforms, and digital assets. Developers are gravitating toward these specialized networks to avoid the limitations, such as slower transaction speeds and high fees, associated with general-purpose blockchain networks that manage mixed-use activities.

Examples of projects that have utilized application-specific layer-1 blockchain networks include Hyperliquid and Injective protocols.

Nonetheless, some critics express concerns that app-specific blockchains fragment liquidity, are vulnerable to hacking due to their centralized nature, and lack the community backing that is characteristic of general-purpose blockchains with decentralized governance.

“Appchains also greatly underestimate the costs related to infrastructure and compliance, including explorers, custody, exchanges, oracles, bridges, toolkits, integrated development environments, on/off ramps, native issuance and integration, and regulatory compliance,” stated Andre Cronje, co-founder of Sonic Labs.

Circle, Stablecoin _Source:_Andre Cronje

In contrast, Marc Boiron, CEO of Polygon Labs—the development team behind the Polygon layer-2 blockchain—countered Cronje’s viewpoint, stating that improved interoperability among different blockchain networks is already in progress and will address the current challenges.

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