Stablecoin issuer Circle has disclosed plans for a native token on its Arc testnet, signalling a new phase in the company’s ambitions beyond its flagship USDC stablecoin.

Notably, the move comes amid strong financial performance in the third quarter of 2025, despite ongoing investor caution over falling interest rates.

Circle eyes a new digital token

The Arc network, launched in October 2025, is an enterprise-focused Ethereum Virtual Machine blockchain designed to foster programmable financial applications.

The Arc testnet already enjoys participation from over 100 companies, including prominent names like Goldman Sachs, BlackRock, and Visa.

The proposed token, which was disclosed by CEO Jeremy Allaire in a post on X highlighting the company’s Q3 performance, is intended to incentivise network participation, encourage adoption, and support a longer-term transition toward decentralised governance through geographically distributed validators.

Originally, Arc was designed to rely on stablecoin-denominated gas fees, primarily USDC, but the introduction of a native token could shift the network’s economic model while aligning the interests of stakeholders.

According to Circle, the token could play a central role in expanding Arc’s utility and strengthening its appeal to developers and enterprises looking for a programmable, scalable blockchain environment.

Circle’s strong growth overshadowed by rate worries

Circle’s third-quarter earnings reflected substantial growth, with the company reporting $740 million in revenue, a 66% increase year-over-year, and net income of $214 million, marking a 202% gain compared with the same period in 2024.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 78% to $166 million while the adjusted earnings per share reached $0.64, far exceeding analyst expectations of $0.20.

However, despite these figures, Circle stock fell by as much as 10% following the earnings release, as investors focused on concerns about declining interest rates affecting the returns on assets backing USDC, primarily short-term US Treasury bills.

CFO Jeremy Fox-Geen emphasised that falling rates could actually support near-term growth by encouraging economic activity, risk-taking, and investment, but the market response remained cautious.

Notably, Circle’s stablecoin market share rose to 29%, with USDC circulation growing 108% year-over-year, underscoring the company’s continuing dominance in the regulated stablecoin space.

Looking ahead, Circle plans to maintain a 40% compound annual growth rate in USDC circulation while continuing to expand Arc’s capabilities.

Building a digital money platform

Circle CEO Jeremy Allaire has repeatedly framed the company’s ambitions as building an “Economic OS” for digital money.

Beyond USDC, Circle has developed the Circle Payments Network (CPN), which enables instant settlements between financial institutions, and a suite of developer APIs that allow fintech companies to embed stablecoin payments into their applications.

The Arc testnet is central to this vision, offering a programmable blockchain layer that could integrate with USDC liquidity and CPN rails to create a comprehensive modular infrastructure for global commerce.

During the firm’s Q3 2025 earnings call on November 12, Allaire described stablecoins as a “winner-take-most” market, highlighting that network effects depend on widespread adoption, deep integrations, and utility rather than simple liquidity.

Allaire also noted that regulatory clarity and technological advancements are driving more firms, from banks to neobanks, to adopt stablecoin infrastructure for cross-border payments and capital markets.

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