Circle Launches Arc Mainnet, Prioritizing USDC for Stablecoin Transactions
Vexoda Newsroom
Circle has officially launched its new layer-1 blockchain, Arc, designed for stablecoin payments. The network uniquely uses USD Coin (USDC) as its native gas token and supports a wide range of stablec
Circle, a prominent issuer of stablecoins, has officially activated its highly anticipated layer-1 blockchain, branded as Arc. This new network is specifically engineered to facilitate stablecoin payments and enhance operations within financial markets, with a particular focus on enabling agentic transactions. The launch signifies a major strategic move for Circle, aiming to establish a dedicated infrastructure for the growing ecosystem of digital currencies and decentralized finance.
The Arc network distinguishes itself by utilizing USD Coin (USDC) as its native gas asset, meaning that fees for transactions on the network will be paid in USDC. This approach aims to streamline operations and reduce friction for users and developers within the stablecoin economy. Arc is also built with Ethereum Virtual Machine (EVM) compatibility, allowing for easier integration with existing Ethereum-based tools and applications, and offers deterministic settlement finality within sub-second timeframes.
Arc's architecture is designed to be highly inclusive, supporting over 20 different fiat-backed stablecoins including Circle's own EURC, JPYC, KRW1, and TRYB, alongside USDC. Furthermore, the network natively integrates tokenized assets such as BlackRock's BUIDL and Circle's own USYC. Interoperability is a key feature, with connections to more than 20 other blockchains facilitated through Circle's Cross-Chain Transfer Protocol (CCTP) and Gateway, ensuring seamless asset movement across different networks.
The development and launch of Arc involved significant preparation, including a public testnet phase that commenced in October 2025. During this testing period, Circle reported substantial participation from over 100 companies, including major financial institutions like BlackRock, Goldman Sachs, Mastercard, and Visa. This indicates a strong level of interest and early adoption from key players in the traditional and crypto financial sectors.
Circle's CEO, Jeremy Allaire, has described Arc as "the single most significant launch in Circle’s history since USDC itself," underscoring the strategic importance of this endeavor. The company envisions Arc as foundational infrastructure for "programmable money, global markets, and agentic economic activity," targeting developers and institutions seeking robust stablecoin-native solutions. The network's focus on enabling autonomous or 'agentic' economic actions hints at future possibilities for automated financial processes.
Looking ahead, Circle has outlined plans to broaden participation in network operations, potentially transitioning from its current Proof of Authority consensus mechanism to a more decentralized Proof of Stake model by 2027. While Circle recently minted 10 billion ARC tokens, it has emphasized that this does not represent a commitment to a public token launch. Traders and developers will be closely watching Arc's adoption rates, the integration of new stablecoins and assets, and the progress toward its planned decentralization roadmap.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.