The issuer of USDC, Circle, will launch Arc and provide early access to Fireblocks.

Stablecoin issuer Circle announced the upcoming launch of its Layer-1 Blockchain Arc and has reached a strategic partnership with the digital asset custody platform Fireblocks to provide first-day network access to over 2,400 Financial Institutions. This move not only marks a significant breakthrough for Circle in the field of Blockchain technology but also injects new momentum into the ecosystem expansion of its USD-backed stablecoin USDC. Meanwhile, Circle raised $1.05 billion through an IPO, with the issuance of USDC surging by 90% to reach $65 billion, further solidifying its position in the global stablecoin market. However, facing Tether's 60% market dominance, Circle's rise adds new pressure to the competition in the stablecoin market.

Arc Blockchain: Fireblocks Empowers Institutional Access

Arc, developed independently by Circle, is a Layer-1 Blockchain that plans to launch its public testnet in the fall of 2025, with the mainnet expected to go live by the end of the year. Fireblocks, a digital asset custody platform headquartered in New York, serves over 2,400 banks, asset management firms, and fintech companies, supporting more than 120 Blockchains. This collaboration enables Fireblocks' clients to begin trading on Arc's launch day, benefiting from custody and compliance tools.

The early integration of Fireblocks provided significant advantages for Arc. In contrast, other blockchain projects like Solana only gained Fireblocks support more than a year after their launch. Fireblocks' involvement not only enhanced Arc's institutional accessibility but also laid the foundation for its first-mover advantage in the competitive blockchain market.

Circle's IPO and financial performance

The launch of Arc is part of Circle's recent series of strategic initiatives. On June 5, 2025, Circle raised $1.05 billion through an IPO, marking the stablecoin issuer's initial public offering. Its opening share price was $69, reaching a high of $298.99, and closing at around $145, demonstrating strong market confidence in its prospects.

Circle's Q2 financial report is also impressive, with revenue reaching $658 million, a year-on-year increase of 53%. Meanwhile, the issuance of USDC reached $65 billion in early August, a year-on-year increase of 90%. On the same day, Circle launched the Circle Payment Network, further expanding its digital payment services, aimed at providing users with more efficient and convenient payment solutions.

Stablecoin Market: Intensifying Competition

According to data from DefiLlama, the global stablecoin market continues to grow rapidly, with a total market value increasing from $25.387 billion in July 2025 to $27.716 billion in August. USDC accounts for about 25% of the fiat stablecoin market, ranking second. However, Tether continues to lead with a 60% market share, posting a profit of $4.9 billion in the second quarter of 2025, primarily due to the returns from holding $127 billion in short-term U.S. Treasury bonds. As a result, Tether has become one of the largest non-sovereign holders of U.S. Treasuries, surpassing countries like South Korea and the UAE.

Despite Tether's dominant position, Circle is continuously expanding its ecosystem influence through the Arc Blockchain, payment networks, and institutional collaborations, bringing new competitive pressure to the stablecoin market.

New Trends in the Blockchain Field

The launch of Arc comes at a time when financial technology companies are accelerating their layout in the blockchain field. In June 2025, Stripe announced its collaboration with Paradigm to develop the Layer-1 blockchain Tempo, focusing on payments and asset issuance. In the same month, Robinhood launched a Layer-2 network focused on asset tokenization. The emergence of these new projects indicates that financial technology companies are driving innovation in payments, stablecoin trading, and the tokenization of real-world assets (RWA) through dedicated blockchain networks.

Circle's Arc Blockchain, through its collaboration with Fireblocks and the extensive application of USDC, is expected to occupy an important position in this wave. Its strategic layout focused on the institutional market not only enhances the accessibility of Blockchain technology but also provides a new model for the integration of traditional finance and digital assets.

Circle's launch of the Arc Blockchain, the rapid growth of USDC issuance, and the success of the IPO demonstrate its ambitions in the digital finance sector. The partnership with Fireblocks further lowers the barriers for institutions to enter the blockchain market, enhancing the competitiveness of Arc. However, in the face of Tether's strong market position and the continuous emergence of blockchain projects, Circle needs to continue its efforts in technological innovation, regulatory compliance, and market expansion.

With the rapid development of the global stablecoin market and blockchain technology, Circle's strategic layout has laid a solid foundation for it to secure a place in the future digital financial ecosystem. For institutional investors, the launch of Arc not only provides new trading and accomplice opportunities but also signifies greater possibilities for the integration of blockchain and traditional finance.

The continuous expansion of Circle's Arc Blockchain and the USDC ecosystem marks significant progress of stablecoins and Blockchain technology in the global financial system. Through cooperation with Fireblocks, Circle provides over 2,400 institutions with convenient access to the digital asset market, while also serving as a reference for the construction of digital asset centers in places like Hong Kong. In the future, as more fintech companies join the Blockchain space, competition in the stablecoin market will become even more intense, and Circle's innovative pace will undoubtedly bring new inspiration to the industry.