Circle Introduces 'Economic Operating System' Through Arc's Native Token Debut

Circle, the company behind the world’s second-largest stablecoin

, is moving forward with the introduction of a native token for its Arc blockchain, aiming to decentralize control and boost adoption. The firm, which posted a 66% year-over-year revenue increase to $740 million and a 202% rise in net income to $214 million for Q3 2025, announced the token plan alongside its financial update, according to a . This new token is set to take the place of stablecoin-based gas fees on Arc and will incentivize stakeholders through a distributed validator rewards system, as highlighted in a .

Arc, a layer-1 blockchain tailored for stablecoin operations, launched its public testnet in October, drawing participation from more than 100 organizations such as Goldman Sachs, BlackRock, and Visa, according to a

. Circle’s strategic roadmap involves shifting Arc to a decentralized governance structure, as described in its Q3 financial disclosure, per a . The company also pointed to Arc’s potential as an open platform for tokenized financial assets, with 29 institutions actively using its Payments Network (CPN) and an annualized transaction volume of $3.4 billion, as mentioned in a .

Circle’s financial results highlighted its expanding role in the stablecoin industry. USDC’s circulation hit $73.7 billion by the end of Q3, marking a 108% annual increase, while adjusted EBITDA rose 78% to $166 million, as stated in a . This performance contrasts with a net loss of $482 million in Q2 2025, largely due to IPO-related expenses, as detailed in a . However, operating costs climbed 74% year-over-year to $448 million, reflecting higher spending on staff and compliance, according to a .

The introduction of a native token fits with the industry’s shift toward blockchains designed for specific applications, which focus on scalability and lower costs rather than broad functionality, as discussed in a

. Jeremy Allaire, Circle’s CEO, reiterated the company’s ambition to create an “Economic OS for the Internet,” merging programmable digital currencies with conventional finance, as noted in a .

Market response was divided. Despite robust financials, Circle’s shares (CRCL) dropped over 4% in premarket trading, reflecting the broader volatility in the crypto sector, as reported in a

. The announcement also came amid intensifying competition in the stablecoin arena, as regulators in the U.S. and worldwide continue to develop digital asset policies, according to a .