Circle Launches Arc, an Open Layer-1 Blockchain for Stablecoins
Circle has launched Arc, an open Layer-1 blockchain aimed at enhancing stablecoin payments, foreign exchange, and capital markets infrastructure. Key features include:
- Compatibility with Ethereum Virtual Machine (EVM)
- USDC as the native gas token for transaction fees
- A public testnet scheduled for later this fall
Arc focuses on:
- Optimizing stablecoin transactions for speed and cost efficiency
- Providing enterprise-grade compliance
- Improving cross-border settlements and capital market operations
Circle reported a 90% year-over-year growth in USDC circulation, reaching $61.3 billion by the end of Q2 2025. Total revenue increased by 53% to $658 million.
Arc's launch aligns with Circle's strategic growth following its $1.2 billion IPO in June 2025, which also coincided with favorable regulatory developments for stablecoins.
The public testnet will allow developers and enterprises to build on a network designed for efficient stablecoin use.