SS #22 - Circle Launches Arc Blockchain

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Good Morning.

Welcome to our 22nd edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Circle Launches Arc Blockchain

• Quick Bites: MetaMask Will Likely Unveil Its Own Stablecoin This Week

• Yield of the Week: 71.64% APR on Dolomite

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HEADLINE

Circle Launches Arc Blockchain

State of play: Circle, fresh from its $1.2B IPO, announced plans for Arc, a stablecoin-focused Layer 1 blockchain set to launch public testnet this fall.

• Arc, an EVM-compatible chain with USDC as native gas, sub-second settlement, FX engine, and opt-in privacy.

• USDC supply up 90% YoY to $65B, Circle remains the 2nd largest stablecoin issuer.

• GENIUS Act aligns with Circle’s compliance first approach, boosting its competitive standing.

What’s Next: Arc’s testnet could attract enterprise adoption in payments, FX, and capital markets. Circle’s integration with partner blockchains positions it to compete with Tether’s own blockchain ventures.

Why it Matters: Circle’s Layer 1 entry signals stablecoin issuers moving beyond token issuance into core blockchain infrastructure. This could redefine settlement speed, FX efficiency, and compliance standards, giving regulated players a stronger foothold as stablecoins gain mainstream adoption.

Our Take: Arc is a strategic move that positions Circle at the intersection of payments, DeFi, and enterprise finance. The regulatory backing of GENIUS plus growing USDC circulation gives Circle a unique edge over rivals.

QUICK BITES

• MetaMask will likely unveil its own stablecoin this week.

• Circle dips 6% after hours on 10M share secondary offering.

• Stripe building payments blockchain 'Tempo' with Paradigm.

• Do Kwon pleads guilty to two fraud charges in years long US case.

• Bernstein backs Circle to deliver most dominant stablecoin network.

• Mizuho says Circle faces 'medium-term' risks from slow USDC growth.

• Tether and IDG Capital lead $16M strategic funding round into Transak.

• PayPal Ventures, Coinbase Ventures and others back crypto payments firm Mesh.

• Coinbase cuts USDC fees for MetaMask users on Base as Circle eyes stablecoin-native Layer 1.

• Coinbase to boost stablecoin liquidity on Aave, Morpho, Kamino, and Jupiter via new Bootstrap Fund.

YIELD OF THE WEEK

Euler USDT / RLUSD on Euler Yield: 12.14% - 59.81%

• Euler enables leveraging USDT as collateral, borrowing RLUSD up to 14.27x to maximize yield.

• With a max LTV of 93%, the liquidity in this pool is up to $14.64M.

• Users can either borrow RLUSD against USDT collateral or utilize leverage to long USDT and short RLUSD.

Dolomite Looped gmPENDLE-USD: 71.64% APR

• Dolomite strategy uses gmPENDLE-USD as collateral to borrow PENDLE, which is then swapped back into more gmPENDLE-USD, creating a looping effect.

• It maintains a delta-neutral stance, as the PENDLE exposure from debt and collateral offsets, leaving only USD exposure and earning from gmPENDLE-USD price gains.

• The position allows up to 2x leverage and faces liquidation if health drops below 1.

Usual Superstate Vault: 15% APY

• Usual’s Superstate Vault provides USD0++ holders with diversified exposure to yield strategies by combining Superstate’s USCC crypto carry trades and USTB tokenized U.S. Treasuries, managed via Lagoon with 9Summits as curator.

• Returns come from USUAL token rewards, USCC’s crypto cash-and-carry spreads, and USTB’s Treasury Bill interest, with yields compounding within the vault.

• uUSCC++ tokens represent vault shares, allowing holders to keep USD0++ productive while accessing both high-yield and low-volatility income streams.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.