Circle names BlackRock, DTCC among Arc validators as Q2 revenue hits $701 million

Stablecoin issuer Circle (CRCL) named 11 founding validators for its Arc blockchain on Wednesday, enlisting BlackRock, Visa, Mastercard, and other major financial institutions to secure the network as it reported second-quarter results.

The cohort includes BlackRock, The Depository Trust & Clearing Corporation, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa, alongside Circle itself, the company said.

Arc is a Layer 1 network that uses USDC as its native gas token, with sub-second finality and opt-in privacy. The blockchain is also EVM-compatible, meaning Arc runs the same code standard as Ethereum, letting developers deploy existing smart contracts and tooling with little to no modification.

Circle first unveiled the Arc network in August 2025 and launched its public testnet in October. It drew participation from multiple Wall Street heavy hitters, including BlackRock and Visa, alongside technology companies such as Anthropic.

The company raised $222 million in an ARC token presale at a $3 billion fully diluted valuation in May, reportedly led by a16z crypto.

Arc is currently in private mainnet with more than 100 ecosystem and institutional builders and remains on track for a public mainnet launch on Sept. 16.

The validator model routes network security through the institutions that depend on it rather than an open set of anonymous operators, a structure Circle argues lets Arc meet the compliance and operational standards demanded of financial market infrastructure.

Institutions line up to build

Several validators are pursuing deeper integrations separately as well.

BlackRock, BNY, DTCC, and Standard Chartered are each building and exploring use cases spanning tokenized asset settlement, digital asset custody, stablecoin access, and FX and repo infrastructure, according to Circle.

Specifically, BlackRock is expected to deploy BUIDL, its USD Institutional Digital Liquidity Fund, on Arc, using the network's native USDC integration to let institutional investors subscribe, redeem, and deploy fund assets within a single onchain environment.

"Stablecoins and tokenized assets are inextricably linked within the future of financial market infrastructure," said Robert Mitchnick, global head of digital assets at BlackRock, in a statement.

Circle is also working with DTCC to allow tokenization of DTC-custodied assets on Arc beginning in the second half of 2027. The connection would let market participants use third-party applications on Arc for stablecoin-native settlement outside of DTC but against DTC-tokenized assets, the company said.

"Our integration with Arc reinforces our commitment to building connected, onchain digital market infrastructure," said Frank LaSalla, DTCC president, CEO and director.

Day-one apps at launch

Arc is set to launch with day-one applications spanning DeFi protocols such as Aave, Morpho, and Uniswap; stablecoin payments providers including Rain, Thunes, and Wirex; and exchanges and wallet providers including Binance Wallet, Kraken, Ledger, and MetaMask.

CRCL shares gained about 7% in pre-market trading following the results, The Block's crypto equities page shows.

Arc has not been reviewed or approved by the New York State Department of Financial Services or any other regulatory authority, according to Circle's disclosures.

Q2 results reflect rate pressure

The validator announcement landed alongside Circle's Q2 results, which showed the pressure of a lower rate environment and a slower crypto market on the stablecoin issuer's core business.

Total revenue and reserve income reached $701 million, up 7% year-over-year, while net income from continuing operations came in at $48 million, a swing of $530 million from a year earlier when IPO-related stock compensation drove a loss. Adjusted EBITDA rose 8% to $143 million.

USDC in circulation ended the quarter at $73.3 billion, up 19% year-over-year, with onchain transaction volume of $14.8 trillion, up 151%. Additionally, Circle's reserve return rate fell 66 basis points to 3.5%, reflecting the rate backdrop.

Meanwhile, Circle raised its full-year Other Revenue guidance to a range of $310 million to $330 million, up from $150 million to $170 million, and lifted its RLDC margin outlook, reflecting recognized ARC token presale revenue.

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Federal charter secured

Circle received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, Circle National Trust, making it one of the first stablecoin issuers to hold a federal bank charter.

The company separately won approval from the New York Department of Financial Services for a limited-purpose trust company.

"Our quarterly financial results reflect the current rate environment and a crypto market that has slowed," said Jeremy Allaire, co-founder, CEO and chairman of Circle. He said institutions using USDC, including BlackRock, BNY, and Standard Chartered, "aren't piloting, they are expanding."