Circle’s Arc Network and Visa’s Stablecoin Pilot Signal New Phase in On-Chain Payments Growth

USDC Circulation Doubles as Circle Reports Strong Q3 Profits, Launches Arc Network Token Plans

TL;DR:

• Circle’s Q3 2025 report shows USDC supply up 108% YoY to $73.7 billion with $740 million total revenue.
• Arc, Circle’s new Layer 1 blockchain, enters public testnet with 100+ institutions onboarded.
• Visa begins stablecoin payout pilot using USDC for direct wallet transfers, expanding global reach.

Circle Internet Group, the issuer of USD Coin (USDC), released its third-quarter 2025 earnings showing a surge in both stablecoin circulation and profitability, while outlining plans for a native token tied to its new Arc blockchain network. The company reported total revenue and reserve income of $740 million for the quarter, up 66% from a year earlier, and a 202% jump in net income to $214 million. USDC circulation hit $73.7 billion, more than doubling year-over-year, marking one of the strongest growth periods for the company since its founding.

The rise in USDC supply and use reflects increasing institutional adoption and stronger integration within the broader coin market cap ecosystem. Reserve income grew 60% from 2024 to $711 million, driven by a 97% increase in average USDC circulation to $67.8 billion. Adjusted EBITDA climbed 78% to $166 million, while operating expenses stood at $131 million for the quarter. Circle also raised its 2025 guidance for “other revenue” — from subscriptions, services, and transactions — to $90 million to $100 million, compared with $75 million to $85 million previously.

CEO Jeremy Allaire credited the results to expanding infrastructure adoption, noting in an X post that the company “made huge progress delivering platforms for the world’s leading startups and financial firms, and saw strong growth and market-share gains for USDC.” Circle’s own on-chain rail, the Circle Payments Network, has grown to support payment flows in eight countries with 29 financial institutions currently enrolled and 500 more in the pipeline. Another milestone came with USYC, the firm’s tokenized money-market fund, reaching $1 billion in assets under management as of November 8.

Arc — Circle’s new Layer 1 blockchain — launched its public testnet on October 28 with over 100 participants spanning traditional finance, capital markets, and crypto sectors. The company describes Arc as a stablecoin-centric network built for programmable finance, using USDC as its native gas token. It offers sub-second finality, predictable dollar-based fees, and an FX engine designed for cross-border transactions. Allaire said the move represents “a remarkable early momentum as leading companies and protocols begin to build and test enterprise-grade network infrastructure.” Circle frames the initiative as part of a long-term push to transform on-chain payments and settlements into regulated financial infrastructure.

Market research from JPMorgan and William Blair has positioned Circle as the top stablecoin play for investors targeting the $20 trillion global payments market, arguing that USDC could eventually serve as a core settlement asset for digital commerce. Bernstein analysts project USDC’s supply could triple by the end of 2027 and capture about one-third of the global stablecoin market, with policy clarity and institutional adoption acting as key catalysts. The crypto price index has also been influenced by this steady growth, as stablecoins anchor market liquidity and reduce volatility in both DeFi and cross-border settlements.

Notably, Circle is also ramping up efforts in the foreign-exchange (FX) market via its upcoming on-chain FX engine, “StableFX.” According to the latest update, the institution plans to launch this platform on its in-development layer-1 chain “Arc1,” allowing compliant institutions to trade stable-coin currency pairs 24/7 with fewer intermediaries and lower counterparty risk. The move taps into the global FX market — which sees daily volumes around US $9.6 trillion — and signals that Circle aims to extend beyond payments into liquid FX infrastructure.

While Circle reported record profits, it faces a tightening interest-rate environment that could impact reserve returns. Analysts have warned that a decline in yield on short-term Treasury holdings would pressure its interest-income margins. Still, the firm appears well-positioned for a regulated future of tokenized finance, leveraging Arc to build institutional-grade rails for the next phase of the crypto economy.

Visa meanwhile signaled a parallel shift in the mainstream payments sector, launching a pilot to send stablecoin payouts directly to crypto wallets funded from U.S. business accounts. Announced on November 12, the programme allows firms to make cross-border payments in USDC through Visa Direct, eliminating the delays and currency-volatility risks typical of traditional bank wires. Chris Newkirk, Visa’s president of Money Movement Solutions, described the initiative as “enabling truly universal access to money in minutes, not days, for anyone, anywhere in the world.” The pilot targets freelancers and global businesses operating in volatile currencies and is expected to expand through 2026. Cuy Sheffield, Visa’s head of crypto, said the project “provides creators, freelancers and marketplaces with a stable store of value and faster access to funds even in markets with limited banking infrastructure.”

Data from Visa’s latest analytics release shows the total stablecoin supply at $217 billion, up 46% year-over-year, with adjusted transaction volume rising 63% to $6.4 trillion. The rollout builds on Visa’s earlier prefunding pilot, which let businesses fund Visa Direct payments using stablecoins instead of fiat. This new model extends the capability to the end recipient, who can hold, spend or convert stablecoins instantly across wallets and markets. Financial analyst Dan Dolev of Mizuho called Visa a potential “stablecoin winner,” noting that Visa Direct has grown at a 50% compound rate since 2016 and could gain a new growth channel through crypto-based settlements.

Together, Circle’s stablecoin expansion and Visa’s integration of digital currencies mark a turning point for regulated on-chain finance. The developments tie the crypto price index more closely to mainstream financial rails, reshaping how digital assets interact with the global economy and underlining the maturing relationship between blockchain-based liquidity and traditional money movement.

This article has been refined and enhanced by ChatGPT.