Circle Launches Arc: A USDC-Powered Blockchain for Stablecoin Innovation

Circle, the issuer of USD Coin (USDC), has unveiled Arc, a new LAYER 1 blockchain tailored for stablecoin applications. This announcement follows Circle's $1.2 billion IPO in June, with a public testnet expected this fall.

Arc is an enterprise-grade, EVM-compatible blockchain optimized for payments, forex, and capital markets. USDC will serve as the native gas token, featuring sub-second settlement times and optional transaction privacy. The platform ensures interoperability with partner blockchains while integrating with Circle's existing infrastructure.

This move strengthens Circle's position as the second-largest stablecoin issuer, with USDC holding $65 billion of the $260 billion stablecoin market. The development aligns with industry trends, as competitors like Tether also invest in stablecoin-focused blockchains.