Circle views ARC as a path toward enterprise adoption and a more modular blockchain landscape
Circle is preparing to introduce a native token for Arc, its enterprise-focused layer-1 blockchain that operates as an Ethereum Virtual Machine network. The company revealed the plan alongside its latest financial results, noting that a native asset could eventually support decentralized governance and help drive participation on the Arc testnet.
This morning we shared our Q3 results @Circle.
We made huge progress delivering platforms for the world’s leading startups and financial firms, and saw strong growth and market-share gains for @usdc.
With @Arc, over 100 major companies are helping us design and test a new… pic.twitter.com/XSfST8x4p6
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) November 12, 2025
Arc first launched in October with backing from major institutions, including Goldman Sachs, BlackRock, Visa, and more than 100 additional partners exploring blockchain-based tools. Circle originally structured the platform to rely on USDC and other stablecoins for gas fees, but the long-term vision involves shifting toward a validator-driven model.
The company said a native token could align incentives among participants, support adoption, and create a foundation for broader decentralization. While specific details about token design are still in development, Circle emphasized that the move is part of building a sustainable ecosystem rather than a short-term experiment.
The announcement came during a strong financial quarter for Circle. The company reported $740 million in Q3 revenue, marking a 66% increase from last year. Net income climbed to $214 million, more than tripling year-over-year. Even with expanding profits, costs also grew significantly.
Distribution and transaction expenses rose 74% to $448 million, while operating costs increased 70% due to workforce expansion and higher compensation. Circle also posted $166 million in EBITDA for the quarter, a 78% jump and a key benchmark for future public-market ambitions.
Arc’s development reflects a broader trend toward app-specific blockchains, or “appchains,” designed for targeted use cases. These networks aim to address bottlenecks seen in general-purpose blockchains, such as slow throughput and rising fees.
Projects like Hyperliquid and Injective highlight how specialized chains can tailor performance for particular applications.
However, some industry leaders warn that appchains risk fragmenting liquidity and creating security vulnerabilities due to centralized validator sets. Others believe growing interoperability tools will help bridge networks and ease these concerns.
