Circle has announced plans to develop a native token for its ARC blockchain testnet, which is tailored for enterprise applications. This initiative follows a robust performance in the third quarter of fiscal year 2025, where the company reported significant growth in the circulation of its USDC stablecoin.
The ARC network, which has been in the testnet phase since October, is an Ethereum Virtual Machine (EVM) compatible blockchain. It aims to facilitate stablecoin transactions and accommodate complex financial operations. Notably, the testnet has garnered participation from major institutions, including Goldman Sachs, BlackRock, and Visa, along with over 100 other companies.
In its recent earnings report, Circle disclosed that the circulation of USDC reached $73.7 billion, marking a 108% increase compared to the same period last year. This surge in stablecoin usage contributed to a total revenue and reserve income rise to $740 million, a 66% year-over-year increase. Furthermore, net income soared by 202% to $214 million, while adjusted EBITDA increased by 78% to $166 million, underscoring Circle”s operational efficiency and scaling capabilities.
Initially, Circle planned to utilize USDC and other stablecoins to determine gas fees on the ARC network. However, the introduction of a native token may alter this strategy. The CEO and co-founder, Jeremy Allaire, expressed satisfaction with the ongoing adoption of USDC and emphasized the need to enhance the company”s ecosystem.
The ARC blockchain is designed with institutional adoption in mind, featuring a unique gas structure that employs USDC as the native token for transaction fees. This approach not only provides stability but also mitigates the volatility typically associated with native blockchain coins.
The exploration of a native token aims to align incentives between developers and institutions, indicating a strategic shift towards greater decentralization. While details about the new token are still emerging, it suggests Circle”s intention to progressively decentralize governance, allowing community participants to have a more significant role in the network”s future.
As the ARC public testnet continues to evolve, its focus on integrating real-world assets into the blockchain could further enhance its appeal and usability. With a clear vision of a programmable financial infrastructure, Circle is positioning itself to capitalize on the expanding landscape of stablecoin finance.
