Circle News: Circle Explores Native Token for ARC Blockchain Testnet After Strong Q3

Circle plans a native token for its ARC blockchain testnet, an enterprise-focused EVM network, following strong Q3 2025 results.

Stablecoin issuer Circle, known for its USDC dollar-pegged stablecoin, is now planning a native token. This token will be for its ARC layer 1 blockchain testnet. The ARC network is an enterprise-focused Ethereum Virtual Machine (EVM) network. Circle has been launching the Arc testnet since October.

Arc Network Gains Traction and Explores New Incentives

The Arc testnet has had a lot of involvement. Investment bank Goldman Sachs is on board. Asset manager BlackRock also takes part. Credit card company Visa and more than 100 companies are participating.

Related Reading: Circle News: Circle Launches Payments-Focused Blockchain Testnet ‘Arc’ | Live Bitcoin News

Circle revealed plans for this new token along with its earnings report on Wednesday. Originally, the company was planning to base gas fees on the Arc network on USDC and other stablecoins. However, this new token may change that approach.

Circle announced its very strong third quarter of its fiscal year 2025. USDC circulation got to $73.7 billion. This is an increase of 108% over the same period in the previous year. Consequently, the use of stablecoins is picking up.

The increase in the usage of stablecoins was responsible for the increase in total revenue and reserve income to $740 million. This indicates an increase of 66% for this period compared to 2024. In addition, net income increased by 202% to $214 million. Adjusted EBITDA also went up 78% to $166 million.

These figures describe Circle’s operating efficiency. They also demonstrate the increasing scale of the company. Average USDC in circulation increased to $67.8 billion. This is up 97% from last year. This was despite a slight reduction in the return rates of reserves, as a result of reduced yields.

Circle Co-Founder and CEO Jeremy Allaire said in a statement that he was pleased. He said, “Circle continued to see accelerating adoption of USDC and our platform.” He added that they are constructing the new Economic OS for the internet. Thus, the company is finding a way to expand its reach.

ARC Blockchain’s Unique Design and Future Vision

Circle’s launch of the Arc public testnet saw over 100 companies register for the public testnet. These firms range from banking, payments, and digital assets. The network was launched in the latter part of October. It is Circle’s vision of programmable financial infrastructure. It has been designed for institutional adoption.

The Arc blockchain is an enterprise-oriented, Ethereum Virtual Machine (EVM) compatible blockchain. It is meant for stablecoin finance. It also seeks to introduce real-world assets to the blockchain. This makes it suitable for complex financial operations.

Arc has a unique feature in its current “gas” system. It uses USDC, the US dollar-pegged stablecoin, as the native gas token for transaction fees. This is how it makes things predictable. It also escapes the volatility associated with conventional native blockchain coins. This system provides stability.

The newly announced native token is being explored to “align incentives between the developers and institutions.” These participants are the key to its growing ecosystem. This implies the shift towards increasing decentralization. Circle shared this plan in its Q3 2025 financial results report. This means that it is still in the exploration phase. Details are limited at this point.

This move suggests that Circle is looking to further decentralize the governance of the network. It wants to give control to a community of participants eventually. Circle’s open L1 blockchain, Arc Network, is designed for stablecoin transactions. It has the features of stablecoins, gas payments, and sub-second finality. It is currently in the public testnet phase.

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