Blockchain development company, Circle, introduces Arc, a Layer-1 blockchain, following the publication of their Q2 earnings report showing $5.9 trillion USD worth of USDC transactions.
Circle, the fintech company behind the popular USD-pegged stablecoin USDC, has launched a new Layer-1 blockchain called Arc. This innovative blockchain is designed to revolutionize stablecoin finance by offering efficient, scalable, and enterprise-grade solutions for stablecoin payments and financial services.
Key Features of Arc
USDC as Native Gas Token
One of the standout features of Arc is the use of USDC as the native gas token. This means that transaction fees are paid directly in USDC, eliminating the volatile gas fees common in other cryptocurrencies and providing predictable, dollar-denominated costs.
Focus on Stablecoins and Financial Services
Arc is specifically designed for stablecoin-native applications and digital dollar transactions, supporting not just USDC but various forms of tokenized value.
Ethereum Virtual Machine (EVM) Compatibility
Developers can build on Arc using familiar tools and programming languages, thanks to its compatibility with Ethereum's EVM. This means that builders can easily deploy applications without having to reengineer them, facilitating a smooth transition to Arc.
High Throughput and Fast Finality
Arc offers sub-second transaction finality and a capacity for up to 3,000 transactions per second with 20 validators. With fewer validators, this capacity could potentially reach up to 10,000 transactions per second, making it suitable for high-volume enterprise use.
Built-in Foreign Exchange (FX) Engine
Arc features a built-in FX engine that provides an institutional-grade request-for-quote (RFQ) system for price discovery and on-chain peer-to-peer settlement 24/7. This enhances global payments and trading workflows.
Opt-in Privacy Features
Users can choose to shield transaction amounts while keeping addresses visible, enabling compliance-friendly privacy for businesses.
Deep Integration with Circle’s Ecosystem
Arc is fully integrated with Circle's ecosystem, supporting Circle Payments Network (CPN), USDC, EURC, USYC stablecoins, as well as Circle's wallets, minting, contracts, and cross-chain transfer protocols.
A New Era for Stablecoin Finance
Arc is positioned as a dedicated, open, and composable blockchain ecosystem optimized for the next generation of digital money applications. With a major focus on stablecoin finance globally and enterprise-ready infrastructure for seamless, low-cost, and fast digital dollar transactions, Arc represents a strategic shift for Circle to create a specialized, scalable platform underpinning stablecoin payments and tokenized financial services beyond general-purpose blockchains.
Circle plans to release Arc to private testnet in the weeks ahead and to public testnet this fall. With USDC in circulation ending Q2 2025 at $61.3B, a 90% increase from Q2 2024, and over $5.9 trillion of on-chain transactions made with USDC in Q2 2025, the stage is set for Arc to make a significant impact in the world of digital finance.
[1] https://www.circle.com/en/blog/introducing-arc-circle-s-new-evm-compatible-layer-1-blockchain [2] https://www.circle.com/en/blog/circle-announces-arc-new-evm-compatible-layer-1-blockchain-designed-stablecoin-powered-use-cases [3] https://www.circle.com/en/blog/arc-layer-1-blockchain-now-live-mainnet
- Circle's new Layer-1 blockchain, Arc, promotes efficient and scalable stablecoin payments and financial services using USDC as the native gas token.
- Arc is engineered for stablecoin-native applications and digital dollar transactions, supporting various forms of tokenized value.
- By being compatible with the Ethereum Virtual Machine (EVM), developers can seamlessly transition and build applications using familiar tools and programming languages.
- Arc offers sub-second transaction finality and a capacity for up to 3,000 transactions per second, with the potential to reach up to 10,000 TPS with fewer validators.
- The blockchain features an integrated foreign exchange engine that offers an institutional-grade request-for-quote system for global payments and trading workflows.
- Arc's opt-in privacy features provide compliance-friendly privacy for businesses while allowing users to shield transaction amounts.
- Deep integration with Circle's ecosystem enables support for Circle Payments Network (CPN), USDC, EURC, USYC stablecoins, wallets, minting, contracts, and cross-chain transfer protocols.
- Arc intends to revolutionize digital finance by creating a specialized, scalable platform for stablecoin-powered use cases, helping to drive the next generation of digital money applications.
