Circle’s Arc blockchain to debut with institutional access via Fireblocks

Circle’s new layer-1 blockchain Arc will integrate with Fireblocks, a New York–based digital asset custody and tokenization platform serving more than 2,400 banks, asset managers and fintechs. Arc is not yet live, but Circle plans to roll out a public testnet this fall ahead of a full launch by year-end.

Fireblocks said it prepares custody and compliance support so clients can transact on Arc once the network launches. Its platform supports over 120 blockchains and facilitates settlement for institutions across global markets.

Source: FireblocksThe unusually early integration drew some criticism on X. Solana, for example, launched in 2020, but wasn’t added to Fireblocks until late 2021, after its ecosystem reached critical mass. Arc will instead debut with Fireblocks integration, giving banks and asset managers “day one” access.

Related: Stablecoins will soon have their ‘iPhone moment,’ Circle CEO

Moving along with US stablecoin regulations

While US regulators advanced clarity around stablecoins with the GENIUS Act signed on July 18, Circle has been expanding its footprint.

On June 5, Circle raised $1.05 billion in the first IPO by a stablecoin issuer. Shares opened at $69, climbed as high as $103.75, and closed at $83.23 — a gain of 168% from the IPO price. The stock reached as high as $298.99 on July 23, and is currently trading around $145.

The company’s first earnings report since going public was released on Tuesday, reporting $658 million in Q2 revenue, a 53% increase year-over-year. It said circulation of USDC grew 90% over the same period, reaching $61.3 billion by June 30 and climbing above $65 billion in early August.

That same day, Circle moved to expand its payments infrastructure with the launch of the Circle Payments Network, and announced Arc — describing it as a layer 1 purpose-built chain for “stablecoin finance.”

While Circle was ahead of the curve with its IPO, the Arc announcement comes amid a broader wave of new blockchain launches, including Stripe developing Tempo with Paradigm and Robinhood rolling out a tokenization-focused L2 in June.

Related: USDC stablecoin launches on XRP Ledger

Stablecoin rivals drive market growth

The stablecoin market cap now stands at roughly $277.16 billion, up from $253.87 billion on July 1, according to data from DefiLlama. While Circle’s USDC accounts for about a quarter of the fiat-backed stablecoin market, Tether continues to dominate globally with around 60% market share.

Tether reported $4.9 billion in profit in Q2 2025, a 277% increase compared with the same period a year earlier. Most of that profit came from Treasury yields, with the company’s $127 billion short-term US debt generating steady income

Tether has now become one of the largest non-sovereign holders of US Treasurys, surpassing countries such as South Korea and the UAE, an unprecedented position for a private company.

Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears

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