Circle Debuts Arc: A USDC-Powered Layer-1 Blockchain Revolutionizing Stablecoin Finance

Circle has launched Arc, a groundbreaking Layer-1 blockchain tailored for stablecoin-native applications. The network, scheduled for private testnet release in coming weeks, represents Circle's most ambitious infrastructure project yet. USDC will function as the foundational layer, solving critical institutional adoption challenges including volatile gas fees, settlement delays, and compliance restrictions.

The Arc blockchain enhances stablecoin utility for global finance through predictable costs, rapid settlement, and regulatory-compliant privacy features. This announcement aligns with Circle's Q2 2025 earnings report showing strong USDC growth and revenue expansion despite net losses.

By removing the requirement for volatile crypto reserves to cover gas fees, Arc emerges as a transformative solution for enterprise adoption. Integrated FX capabilities further boost its appeal to institutions seeking frictionless blockchain integration.