Circle launches Arc mainnet to boost USDC utility

Circle announced that its Arc blockchain will go live on a public mainnet on September 16. The launch aims to make USDC the sole balance needed for both payments and network fees, potentially simplifying stablecoin usage.

One balance for payments and fees

Arc is a layer‑1, Ethereum‑compatible blockchain that uses USDC for transaction fees and for the payments themselves. Users can hold a single USDC balance, send USDC, and pay the associated fee from that same balance, eliminating the need for a separate token to cover fees.

Developer and validator model

Developers can build applications with familiar Ethereum tools while the network’s validators are selected from a permissioned cohort. The announced validator group includes major financial institutions such as BlackRock, DTCC, Visa, Mastercard and Standard Chartered, alongside Circle.

Potential impact on USDC demand

At the end of June, Circle reported USDC circulation of $73.3 billion, compared with $184.6 billion of USDT issued by Tether. By making USDC the asset for both spending and fee payment, Arc could provide a use case that encourages users to retain larger USDC balances.

Limitations and outlook

The public launch will test the network’s commercial viability, but it does not guarantee increased market share for USDC. Success will depend on whether the simplified fee model drives additional user adoption and higher USDC inflows.