WuBlockchain
Circle Chief Product and Technology Officer Nikhil Chandhok said in a September 16 Bankless interview that simply moving Ethereum's existing USDC activity to Arc would not expand the overall market. Ethereum remains the largest blockchain for USDC, he said.
Why it matters
Chandhok's growth thesis for Arc is tied to a new category of on-chain activity: AI agents acting as independent economic participants. Rather than compete only for existing transaction volume, Arc would support agents that record the work they perform online and build verifiable histories.
Market impact
Cryptographic proofs could allow users and counterparties to verify an agent's work history and economic output. If that model gains adoption, it could create new demand for on-chain settlement and USDC beyond activity migrated from Ethereum. The key question is whether agent activity develops into a meaningful source of transactions for Arc.
Frequently asked questions
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Why does Circle say moving Ethereum activity to Arc is not enough?
Nikhil Chandhok said Ethereum is the largest blockchain for USDC, so moving existing activity to Arc would not expand the overall market.
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What new use case does Arc target?
Arc targets AI agents acting as independent economic participants and recording the work they perform online.
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How would cryptographic proofs support AI agents?
Cryptographic proofs could help verify an agent's work history and actual economic output.
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How could Arc create new USDC demand?
Arc could generate new on-chain activity from AI agents instead of relying only on USDC transactions migrated from Ethereum.
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What will determine whether this strategy succeeds?
The key test is whether AI-agent activity develops into a meaningful source of on-chain transactions and USDC usage on Arc.
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