Yesterday's happenings in the cryptocurrency realm that you might have overlooked:
In a significant move for the crypto sector, Circle, the issuer of the stablecoin USDC, has announced the upcoming launch of its own Layer-1 blockchain named Arc. The public testnet is expected this fall, with the mainnet launch anticipated before the end of the year [1][2][3][5].
Key Features and Implications of Arc Blockchain
Arc boasts several unique features that set it apart from traditional blockchains. It is compatible with the Ethereum Virtual Machine (EVM), allowing developers to use existing Ethereum tools and smart contracts, easing integration and development [1][2][4].
The most notable feature is the use of Circle’s USDC stablecoin as the native gas token. This means transaction fees will be paid directly in USDC, unlike traditional blockchains that typically require volatile crypto tokens (e.g., ETH on Ethereum) [1][2][3][4]. This alignment with Circle’s aim to create a blockchain purpose-built for stablecoin finance is a game-changer.
Arc is designed specifically for stablecoin payments, foreign exchange (FX), and capital markets applications. It includes an integrated stablecoin FX engine and offers sub-second settlement finality, critical for high-speed, low-latency financial transactions [1][4].
The blockchain offers opt-in privacy controls to allow users, especially businesses, to hide transaction amounts while keeping address data visible, addressing regulatory compliance needs [4]. Arc aims for up to 3,000 transactions per second (tps) with 20 validators or up to 10,000 tps with just four validators, providing scalability for institutional usage [4].
Arc will be fully integrated with Circle’s existing platforms and interoperable with dozens of partner blockchains supporting USDC, ensuring ecosystem coherence and broad utility [1][2][3]. Circle has partnered with Fireblocks, a major institutional custody and infrastructure provider, to give enterprises day-one access to Arc, signalling a focus on institutional adoption and stablecoin finance growth [5].
Strategic Implications
This blockchain launch marks a major strategic milestone for Circle as it expands from being just a stablecoin issuer to providing a full-stack platform for internet finance centred on stablecoins. By making USDC the native gas token, Circle is increasing the utility and demand for USDC, potentially strengthening its position as the leading regulated digital dollar in markets with growing crypto and digital payment usage.
The combination of fast settlements, integrated FX, privacy options, and compliance can position Arc as a preferred infrastructure for financial institutions conducting digital dollar transactions, cross-border payments, and capital market operations on-chain.
With USDC remaining one of the largest stablecoins globally, with over $65 billion in circulation across 24 networks, and Ethereum hosting the greatest supply, Arc could consolidate and grow USDC’s market by attracting institutional users to a stablecoin-optimized blockchain [2].
In summary, Circle’s Arc launch represents a significant evolution in the stablecoin and blockchain space by creating a dedicated, enterprise-grade EVM-compatible network with USDC native gas, optimised for payments, FX, and capital markets, with high scalability, regulatory compliance features, and strong institutional onboarding from day one [1][2][3][4][5].
[1] Circle. (2025). Announcing Arc: A New Layer 1 Blockchain for Stablecoin Finance
[2] CoinMarketCap. (2023). USD Coin (USDC)
[3] Decrypt. (2025). Circle Is Building a New Blockchain for Stablecoins: What You Need to Know
[4] Circle. (2025). Arc: A New Layer 1 Blockchain for Stablecoin Finance
[5] Fireblocks. (2025). Circle’s Arc Blockchain to Launch with Fireblocks as Institutional Custody and Infrastructure Partner
- The crypto academy should discuss the strategic implications of Circle's Arc blockchain launch, as it is a significant evolution in the stablecoin and blockchain space, offering a dedicated network for stablecoin finance with features such as USDC native gas, high scalability, and compliance.
- The finance industry may find Arc blockchain attractive, as it is designed for stablecoin payments, foreign exchange (FX), and capital markets applications, boasting an integrated stablecoin FX engine, sub-second settlement finality, and opt-in privacy controls to aid regulatory compliance.
