Circle, the issuer of USDC, has unveiled Arc, a new Layer-1 blockchain designed exclusively for stablecoin-based applications. Arc uses USDC as its native gas token, features deterministic finality, built-in fiat-to-crypto conversion, and opt-in privacy features for institutions. The network launched its public testnet in October 2025, with mainnet beta expected in 2026. An ARC token has been announced, with 60% allocated to the ecosystem, 25% to Circle, and 15% to a long-term reserve. The token presale raised $222 million, led by Andreessen Horowitz with $75 million, along with BlackRock and Apollo Funds. Arc aims to address common limitations of existing blockchains including fee volatility, probabilistic settlement, lack of privacy controls, and fragmented liquidity. It incorporates a modular privacy system using confidential transfers with view keys for regulatory compliance, and plans to expand to zero-knowledge proofs and homomorphic encryption.

Key facts

• Arc is a Layer-1 blockchain by Circle, designed for stablecoin applications.
• Uses USDC as native gas with deterministic finality and predictable fees.
• Opt-in privacy features using confidential transfers and view keys.
• Mainnet beta expected in 2026; ARC token pre-sale raised $222M.
• Addresses fee volatility, probabilistic settlement, privacy, and liquidity fragmentation.

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