Circle Shakes Up Crypto: Arc Blockchain Launches with USDC as Native Gas Token

Move over, ETH gas fees—Circle just flipped the script. Their new Layer-1 blockchain, Arc, runs entirely on USDC for transaction costs. No more volatile native tokens; just cold, stablecoin efficiency.

Why it matters: This could be the killer app for institutional DeFi adoption. Finally, a chain where your gas budget doesn’t swing 30% before lunch. TradFi suits, take notes.

The twist? Circle’s playing the long game. By anchoring Arc to USDC, they’re effectively turning every transaction into a stealth marketing push for their stablecoin empire. Clever—or borderline monopolistic? You decide.

One thing’s certain: If Arc gains traction, it’ll make more bankers ‘accidentally’ invest in crypto while pretending to hate it. The ultimate irony.

Introducing Arc: Purpose-Built for Stablecoin Finance

Arc represents Circle’s most ambitious infrastructure initiative to date. Built as an enterprise-grade blockchain, Arc will support stablecoin payments, foreign exchange, and capital markets applications.

The EVM-compatible network uses USDC as its native gas token and features an integrated stablecoin FX engine, sub-second settlement, and opt-in privacy controls.

Planned for public testnet launch this fall, Arc will be fully integrated with Circle’s existing platform and interoperable with dozens of partner blockchains.

Allaire explains Arc will offer “a foundation for the next generation of internet finance,” giving developers and institutions purpose-built tools for stablecoin-based commerce.

Payment Capabilities

The Arc announcement follows the May launch of the Circle Payments Network, a platform allowing financial institutions to send and receive stablecoin payments.

Circle reports more than 100 institutions are in the onboarding pipeline. Partnerships span digital asset platforms, banking providers, and payment processors, including Binance, Corpay, FIS, Fiserv, and OKX.

Circle is making a push to embed USDC more deeply into global payment flows, cross-border transactions, and capital markets infrastructure. Allaire stressed that stablecoins are moving beyond niche crypto use cases into “every significant sector of the financial industry.”

Vision for the Internet Financial System

With Arc, Circle said it aims to close the gap between stablecoin adoption and the infrastructure needed for large-scale, compliant, and efficient use.

By making USDC the native gas token and integrating foreign exchange functionality directly into the blockchain layer, Circle is positioning Arc as a ready-made environment for enterprises that want speed, stability, and regulatory clarity.

“Our goal is to deliver a full-stack platform for the internet financial system,” Allaire said. “Arc is a key piece of that vision, and we believe it will accelerate the shift to a stablecoin-powered global economy.”

Circle Launches Native USDC and CCTP V2 on Hyperliquid

In July, Circle announced that its native USDC and Cross-Chain Transfer Protocol (CCTP) V2 will soon launch on Hyperliquid, a trading platform designed for decentralized finance.

In a blog post, the firm reports a surge in Hyperliquid’s total assets under management (AUM), which recently topped $5.5 billion, up from under $4 billion earlier this month.