Key facts
- Circle's Arc blockchain public mainnet launches September 16.
- BlackRock, Visa, and Mastercard are founding validators for Arc.
- BlackRock plans to deploy its BUIDL fund on Arc.
- Arc blockchain will use USDC for gas fees.
- Circle beat profit estimates with 18 cents per share.
- Circle reported $701.3 million in quarterly revenue, missing targets.
- USDC circulation grew 19% to $73.3 billion.
- Circle's revenue and reserve income rose 7% year-over-year.
- Visa Direct is integrating stablecoin payouts via Zerohash.
- Visa's integration aims for faster cross-border transactions.
Circle's Arc blockchain is scheduled to launch its public mainnet on September 16, featuring a strong cohort of founding validators including major financial institutions BlackRock, Visa, and Mastercard. BlackRock has announced plans to deploy its BUIDL fund on the Arc network. The blockchain will use USDC for gas fees, integrating the stablecoin into its operational framework. This upcoming launch follows a mixed financial report from Circle, which announced a quarterly profit beat of 18 cents per share but missed revenue targets, reporting $701.3 million. Despite the revenue shortfall, Circle experienced a significant 19% growth in USDC circulation, reaching $73.3 billion. The company's overall revenue and reserve income saw a 7% year-over-year increase, primarily driven by this accelerated USDC circulation, although the broader stablecoin market experienced a slight decline.
In parallel developments, Visa is expanding its payment infrastructure to incorporate stablecoin functionalities. Through an integration with crypto infrastructure provider Zerohash, Visa Direct will now offer clients stablecoin prefunding and payout options. This enhancement aims to facilitate faster and more flexible cross-border transactions, particularly for use cases outside of traditional banking hours. The move by Visa underscores a growing trend among financial institutions to leverage stablecoins for improved payment efficiency and accessibility.
The Arc blockchain's mainnet launch signifies a major step for Circle in establishing its own blockchain infrastructure, attracting significant institutional interest even amidst its quarterly financial performance. The utilization of USDC for gas fees on Arc further solidifies the stablecoin's role within the ecosystem. The broader context includes the evolving landscape of digital assets and payments, with companies like Visa actively seeking to bridge traditional finance with blockchain-based solutions to meet client demands for speed and global reach.