CoinDesk
Circle launched Arc, a Layer 1 blockchain built as an "economic operating system" for payments, tokenized markets, lending and trading, with more than 100 institutions and ecosystem companies live on or exploring the network. CEO Jeremy Allaire called Arc more consequential than USDC itself in the company's history, framing it as a full-stack pivot from stablecoin issuer to onchain financial infrastructure. Arc debuts with BlackRock, Visa, Mastercard, Standard Chartered, DTCC and Intercontinental Exchange among its founding validators, while BNY, HSBC and State Street anchor the broader 100-company roster.
Why it matters
Arc arrives as competition across the stablecoin stack intensifies. A 21-bank consortium including Bank of America, Citi and Goldman Sachs is preparing a dollar stablecoin for the first half of 2027, European bank group Qivalis is building a euro token, and Stripe is moving deeper with the Open Standard's Open USD stablecoin and Tempo, the payments-focused chain it incubated with Paradigm.
Allaire compared Circle's strategy to Google operating its own platforms while keeping products like Gmail and YouTube available on rival systems. USDC will continue to distribute across competing networks, but Arc is positioned as a new growth engine. The chain uses proof of authority with permissioned validators, USDC-denominated fees, sub-second finality and configurable privacy that lets institutions shield transaction data while preserving auditor access.
Market impact
Arc completed the genesis mint of 10 billion ARC tokens this week, though Allaire stressed the token is not yet publicly available and the mint does not represent a commitment to a public launch. Circle is exploring a proof-of-stake transition in 2027 that could give ARC a role in security, governance and utility while keeping USDC as the gas token.
The chain brings tokenized money market funds including Circle's USYC and BlackRock's BUIDL onchain, alongside Uniswap and Aerodrome for trading and Aave and Morpho for lending. Circle Payments Network and StableFX are being integrated directly.
Frequently asked questions
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What is Circle Arc and who is building on it?
Arc is a Layer 1 blockchain launched by Circle as an economic operating system for payments, tokenized markets, lending and trading. It debuts with BlackRock, Visa, Mastercard, BNY, HSBC, DTCC and ICE among more than 100 participating institutions and ecosystem companies.
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How does Arc compare to Stripe's Tempo and bank stablecoin projects?
Arc enters a crowded field. A 21-bank consortium including Bank of America, Citi and Goldman Sachs is preparing a dollar stablecoin for the first half of 2027, while Stripe is building Tempo with Paradigm. Circle is positioning Arc as a full institutional rail rather than just a stablecoin.
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What role does the ARC token play?
Circle completed the genesis mint of 10 billion ARC tokens this week but has not launched the token publicly. The network currently runs on proof of authority, with a proof-of-stake transition under consideration for 2027 that could give ARC a role in security, governance and utility.
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Why does Arc charge fees in USDC instead of its native token?
Circle CEO Jeremy Allaire compared requiring a native token to use a network with making Netflix buy Amazon shares to pay its AWS bill. Using USDC keeps transaction costs stable and removes a friction point for institutional users.
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How much did Circle raise for Arc and at what valuation?
Circle raised $222 million in an Arc token presale in May at a $3 billion network valuation. Investors included Apollo Funds, ARK Invest, BlackRock and Bullish, putting institutional capital behind the launch.
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