Circle launches Arc blockchain, calling it more consequential than USDC

Circle announced the launch of Arc, a permissioned blockchain designed as an “economic operating system” for payments, tokenized markets, lending and trading. The network charges transaction fees in USDC and currently relies on a set of approved validators.

Institutional participation

More than 100 institutions and ecosystem companies are live on or exploring Arc, including BlackRock, Mastercard, Visa, BNY Mellon, HSBC, DTCC, Intercontinental Exchange and Standard Chartered. Trading venues such as Uniswap and Aerodrome, as well as lending protocols Aave and Morpho, are also connected to the network.

Token model and future roadmap

Circle completed the genesis mint of 10 billion ARC tokens, though the token is not yet publicly available. The network currently operates on a proof‑of‑authority model, with Circle evaluating a shift to proof‑of‑stake in 2027 that could give ARC a role in security, governance and utility. Transaction fees will continue to be paid in USDC.

Strategic context

The launch comes as competition in the stablecoin space intensifies, with banks and payment firms developing their own dollar‑linked tokens. Circle positions Arc as a general‑purpose platform for asset issuance, cross‑chain interoperability and 24/7 foreign‑exchange settlement through its StableFX service.

Funding and valuation

In a May token presale, Circle raised $222 million at a $3 billion valuation, backed by investors such as Apollo Funds, ARK Invest, BlackRock and Bullish.