Circle, the company behind the USDC stablecoin, launched Arc, a blockchain platform designed specifically for stablecoin-based applications. The network's public mainnet went live on September 16, 2026.
Unlike general-purpose blockchains such as Ethereum or Solana, Arc is built to address infrastructure challenges that Circle says limit stablecoin adoption at institutional scale. According to Rachel Mayer, VP of Product Management at Circle, enterprise feedback centered on three priorities: predictable costs, deterministic settlement finality, and privacy compatible with regulatory obligations.
Key Features
Arc uses USDC as its native gas token, eliminating the need for volatile tokens to pay transaction fees. The network's fee model is built on Ethereum's EIP-1559 architecture but replaces block-level adjustments with a weighted moving average of network demand. Fees are denominated in USDC and directed to an on-chain Arc Treasury.
The network operates on proof of authority with permissioned validator selection based on operational resilience, geographic distribution, and regulatory compliance. A possible transition to proof-of-stake is planned for 2027. Validators include BlackRock, DTCC, Galaxy, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, Visa, and Worldpay.
Arc includes a modular privacy system designed to balance compliance with confidentiality. The first feature, confidential transfers, shields transaction amounts while keeping addresses visible. Institutions can selectively disclose data to regulators via view keys. Future privacy features planned include zero-knowledge proofs, multi-party computation, and fully homomorphic encryption.
Network Activity and Adoption
Arc's public testnet launched in October 2025 and processed more than 700 million transactions in under a year. More than 100 institutional and ecosystem partners were on the network on its first day of public operation.
Lending protocols Aave and Morpho anchor lending on Arc, while Uniswap, Aero, and fomo handle trading. Exchanges including Binance, Kraken, Bybit, and OKX offer routes onto the network, with Coinbase to follow. Banks with access include BNY, HSBC, Societe Generale, and State Street.
Circle cited Dune data showing USDC accounts for 98.8% of agent-driven transaction volume on the network.
The ARC Token
Circle completed the genesis mint of 10 billion ARC tokens in September 2026, making it the first publicly traded company to mint a network token for a new layer-1 blockchain. The company said the mint is not a commitment to publicly launch ARC but rather a technical step toward a possible move to proof-of-stake.
Of the initial ARC token supply, 60% is allocated to the ecosystem, 25% to Circle, and 15% to a long-term reserve. New token issuance is expected to begin at an annual rate of 2–3%, with the long-term objective described as inflation neutrality.
In May 2026, Circle announced a $222 million token presale for ARC, achieving a $3 billion fully diluted valuation. The raise was led by VC firm Andreessen Horowitz with a $75 million investment, with other participants including BlackRock and Apollo Funds.
Circle reported in August 2026 that it roughly doubled its full-year guidance for other revenue, attributing part of the increase to recognized revenue from the ARC token presale.
