Circle, the company behind the USDC stablecoin, has launched a new blockchain platform called Arc. Unlike general-purpose chains like Ethereum or Solana, Arc is a layer-1 network designed specifically to support stablecoin-based applications at an institutional scale.
Why Circle Built Arc Stablecoins have seen growing interest following the passage of the GENIUS Act, signed into law by President Donald Trump in July 2025. Circle argues most existing blockchains were not designed for stablecoins, citing issues like fee volatility, probabilistic settlement, lack of privacy, and fragmented liquidity. Arc addresses these challenges with instant and irreversible settlement, predictable fees priced in stablecoins, optional privacy features, and built-in connections to other blockchains and traditional finance.
Arc's public testnet launched in October 2025, with mainnet beta expected in 2026.
USDC as Native Gas By using USDC for transaction fees, Circle eliminates the need for volatile tokens. The network can also support other stablecoins via a paymaster system. Fees are directed to an on-chain Arc Treasury.
Deterministic Settlement and Consensus Arc's consensus layer is powered by Malachite, a BFT engine based on Tendermint. Validator selection is currently permissioned, with plans for a transition to a permissioned Proof-of-Stake mechanism.
The ARC Token Circle published the Arc white paper in May 2026, outlining the ARC native token's role as the "coordination mechanism" as the network transitions to proof-of-stake. Initial supply is 10 billion tokens, with issuance starting at 2-3% annually. 60% of supply is allocated to the ecosystem, 25% to Circle, and 15% to a long-term reserve. In May 2026, Circle announced a $222 million token presale, reaching a $3 billion fully diluted valuation, led by Andreessen Horowitz with participation from BlackRock and Apollo Funds.
Opt-in Privacy Arc includes a modular privacy system with confidential transfers that shield amounts while keeping addresses visible. Institutions can selectively disclose data via view keys.
Positioned as an enterprise-grade platform, Arc aims to extend stablecoin utility beyond payments into real-time settlement, tokenization, and global capital.