Circle Launches USDC-Centric Arc Blockchain for Enterprise Financial Solutions

Circle, the issuer of the USDC stablecoin, has announced the development of Arc, a proprietary LAYER 1 blockchain designed for enterprise applications. This new network aims to enhance regulated money movement and integrate seamlessly with global financial systems while ensuring interoperability with partner blockchains.

Arc will offer high-performance capabilities for stablecoin payments, foreign exchange, and capital markets. It features EVM compatibility and uses USDC as its default gas token, promising sub-second settlement finality and optional privacy features. Performance targets include 3,000 transactions per second (TPS) with under 350 milliseconds finality, scalable up to 10,000 TPS with fewer validators.

Despite its promising features, concerns about centralization have arisen due to Circle's governance role and the network's validator structure. The public testnet is expected to launch between September and December 2025.