August 12, 2025
5 min read
Helen Partz
USDC Issuer Circle to Launch New Layer-1 Arc Blockchain This Year
Circle, the issuer of the USDC stablecoin and a publicly traded U.S. company, announced plans to launch a new layer-1 (L1) blockchain called Arc later this year. Arc will be compatible with the Ethereum Virtual Machine (EVM) and designed specifically to support stablecoin finance. The company released its second-quarter 2025 financial results on August 12, reporting a 53% year-over-year increase in total revenue and reserve income, reaching $658 million.Arc Blockchain: Purpose-Built for Stablecoin Finance
Circle describes Arc as an "enterprise-grade foundation" for stablecoin payments, foreign exchange, and capital markets applications. The blockchain will feature USDC as its native gas token, allowing users to pay transaction fees directly in the stablecoin. Key features of Arc include:- Native USDC gas token for transaction fees
- An integrated stablecoin foreign exchange engine
- Sub-second settlement finality
- Opt-in privacy controls Arc will be fully integrated with Circle’s existing platform and services and will remain interoperable with the dozens of other partner blockchains that support USDC.
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USDC Market Presence
At the time of the announcement, USDC had a market capitalization of $65.6 billion and was running on 24 different blockchain networks. Ethereum remains the largest network for USDC, with a total supply of $42.6 billion on the Ethereum blockchain.Looking Ahead
Circle’s launch of Arc marks a significant step toward creating a "full-stack platform for the internet financial system," emphasizing stablecoin finance as a core component. The public testnet for Arc is expected to launch later this year. This is a developing story, and further updates will be provided as more information becomes available.Frequently Asked Questions (FAQ)
About the Arc Blockchain
Q: What is the primary purpose of the Arc blockchain? A: The Arc blockchain is designed specifically to support stablecoin finance, serving as an enterprise-grade foundation for applications in stablecoin payments, foreign exchange, and capital markets. Q: What will be the native gas token for the Arc blockchain? A: USDC will be the native gas token for the Arc blockchain, meaning users can pay transaction fees directly with USDC. Q: What are some key features of the Arc blockchain? A: Key features include native USDC gas token, an integrated stablecoin foreign exchange engine, sub-second settlement finality, and opt-in privacy controls. Q: Will Arc be compatible with other blockchains? A: Yes, Arc will be fully integrated with Circle’s existing platform and services, and will remain interoperable with other partner blockchains that support USDC. It is also designed to be compatible with the Ethereum Virtual Machine (EVM). Q: When is the Arc blockchain expected to launch? A: Circle plans to launch the Arc blockchain later this year, with the public testnet expected to go live this year as well.Crypto Market AI's Take
Circle's venture into launching its own layer-1 blockchain, Arc, signifies a strategic move to enhance the utility and infrastructure surrounding its stablecoin, USDC. By creating a purpose-built blockchain optimized for stablecoin finance, Circle aims to streamline transactions, facilitate foreign exchange, and bolster capital markets applications. This initiative aligns with the broader trend of stablecoins playing an increasingly pivotal role in the digital financial ecosystem, offering a bridge between traditional finance and decentralized applications. Our platform, Crypto Market AI, continuously analyzes such developments, providing insights into the evolving landscape of digital assets and blockchain technology to help users navigate these complex markets. Developments like Arc highlight the growing need for specialized blockchain solutions that cater to specific financial use cases, potentially leading to greater efficiency and adoption of stablecoins.More to Read:
Source: Cointelegraph