Circle launches an EVM-compatible Arc blockchain enabling fast, low-cost USDC payments, FX trading, and tokenized asset settlement.
Circle has introduced Arc, a new Layer-1 blockchain. It is built for stablecoin payments, foreign exchange, and capital markets. Arc is open and enterprise-grade. It uses USDC as its native gas token. The blockchain is Ethereum Virtual Machine (EVM)-compatible. A public testnet is planned for this fall. This information was posted on the Circle official X account.
Arc Blockchain Enables Fast, Low-Cost USDC Payments With Built-In FX Engine
According to the blog post, Arc focuses on stablecoin finance. It seeks to ensure that payments are quick and secure. Compared to conventional systems, Arc provides cheap transactions. It pays gas fees using USDC, and users do not have to use volatile cryptocurrencies. This is because costs are predictable. Also, Arc has sub-second transaction finality. This implies that payments are settled virtually in real time. Users and businesses are able to transfer funds across the world easily.
Then, Arc is EVM-compatible. This enables developers to work with tools that they are used to on Ethereum. They can develop applications compatible with the Ethereum environment. As an illustration, Arc accepts USDC, EURC, and other stablecoins. It also combines with the services of Circle, such as Circle Payments Network. This is simple to interface with other blockchains. Consequently, developers are able to build payment, trading or tokenized apps.
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Further, Arc follows an inbuilt foreign exchange (FX) engine. This assists companies in exchanging stablecoins within a short time. By way of example, it facilitates 24-hour price discovery and settlement. This is helpful in cross-border payments. Firms will not have to pay hefty charges charged by conventional systems such as SWIFT. Arc also has the option to opt in to privacy. The users will be able to mask transaction information in a compliant way. This achieves privacy and control.
Circle Unveils Arc to Bridge Traditional Finance and Blockchain
Meanwhile, Arc aims to transform capital markets. It embraces such tokenized assets as equities and bonds. These assets are immediately traded on the blockchain. To give just one example, Arc will allow delivery-versus-payment of tokenized securities. This minimizes inefficiencies in the traditional markets. The associations of Circle with other corporations such as Binance and Fiserv, enhance the presence of Arc. Such relationships can assist companies in using stablecoin solutions.
Moreover, Circle has been growing in the recent past, paving the way for the launch of Arc. By Q2 in 2025, there will be a 90 percent gain in USDC circulation to $61.3 billion compared to the previous year. The overall revenue increased by 53 percent to 658 million. Circle, however, experienced a net loss of 482 million dollars as a result of IPO expenses. Nonetheless, Arc has been termed a defining moment with regard to stablecoin adoption by CEO Jeremy Allaire. Blockchain is meant to fill the gap between traditional and digital finance.
Previously, Arc has been undergoing testing on its testnet, which will be getting launched shortly. Applications can be tested in a secure environment by their developers. Circle will invite developers to participate in the testnet. This is to fine-tune the network before the mainnet in 2026.
Lastly, Circle Arc blockchain is a radical step. It provides instant, cheap payments in the form of stablecoins. It is developer-friendly, as it is EVM-compatible and has an FX engine. Arc covers both payments and tokenized assets on a global and financial application level. With the testnet coming, Arc may reinvent digital finance. Circle is developing a solid foundation in the future.
The post Circle Launches Arc Blockchain for Stablecoin Payments appeared first on Live Bitcoin News.