Circle, issuer of the world’s second-largest stablecoin, USDC, posted estimate-beating first-quarter earnings as revenue rose 20% and it raised $222 million for its Arc blockchain network in a presale of the ARC token.
Earnings per per share (EPS) of 21 cents beat analysts’ estimates of 17 cents, while revenue rose 20% to a less-than-expected $694 million. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 24% from a year earlier to $151 million, the New York-based company reported.
USDC onchain transaction volume jumped 260% from the previous quarter to $21.5 trillion, and USDC in circulation rose 28% to $77 billion.
The ARC token sale values the project at $3 billion. The fundraising round included investments from a mix of Wall Street heavyweights and crypto-native companies, including BlackRock, Apollo Funds, a16z crypto, ARK Invest, CoinDesk’s parent company Bullish, Haun Ventures, Intercontinental Exchange and Standard Chartered Ventures.
The fundraising marks Circle’s most ambitious expansion beyond USDC and payments infrastructure, pushing the stablecoin issuer deeper into the race to build blockchain infrastructure for institutional finance.
Circle also published the Arc white paper on Monday, which describes ARC as a “native coordination asset” designed to support governance, validator security and network operations across the chain.
Arc, which began testing in October, is being positioned as a blockchain optimized for stablecoin-based capital markets and regulated financial activity, which includes tokenized assets, cross-border settlement and onchain financing.
Unlike USDC, which acts as a dollar-pegged payment token, it seems that ARC should play a role closer to ether (ETH) on Ethereum or SOL on Solana – helping to coordinate the network’s financial and security model.
CRCL shares were nearly 1.2% higher at $115 in premarket trading around 7:30 ET.
UPDATE (May 11, 11:20 UTC): Adds Circle’s first quarter earnings report information and restructures article to lead with earnings.
