CryptoSlate
Circle has scheduled the public launch of Arc, its purpose-built layer-1 blockchain, for Sept. 16, giving USDC a network where one dollar balance funds both payments and transaction fees. The rollout follows a private mainnet that Circle said hosted more than 100 ecosystem and institutional builders in August, after the public testnet opened on Oct. 28, 2025.
Arc is Ethereum-compatible, with transactions designed to reach finality in under a second. Its central design choice is fee simplicity: on many chains a user holding enough USDC to make a payment still needs a separate token to cover gas. Arc makes USDC itself the fee asset, so sending and paying come out of the same underlying balance. Native and token interfaces represent one holding, so wallets should not display them as separate pots.
Why it matters
The network pairs permissionless application building with a permissioned validator set, and the founding cohort reads like a TradFi settlement table: BlackRock, DTCC, Visa, Mastercard, Standard Chartered, and Circle itself. That puts the institutions handling traditional dollar flows directly inside the chain's validation layer, a design aimed at businesses weighing blockchain settlement.
Market impact
The launch is a direct competitive strike at Tether. Circle reported $73.3 billion of USDC in circulation at the end of June against roughly $184.6 billion of USDT, so Arc exists to create structural reasons to hold USDC: if fees and payments both demand it, users keep balances live on the network. The open question is whether Arc merely relocates existing USDC or actually pulls new money in. Opt-in privacy features, including Arc Privacy Sector and Stablecoin Services, are still listed as planned and unavailable, so the public mainnet launches with that piece of the roadmap unfinished.
Frequently asked questions
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What is Arc and when did its public mainnet launch?
Arc is Circle's Ethereum-compatible layer-1 blockchain built around stablecoin transactions. Its public mainnet launch was scheduled for Sept. 16, following a private network with more than 100 institutional and ecosystem builders and a public testnet that opened Oct. 28, 2025.
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How does paying fees in USDC on Arc work?
Arc makes USDC the network's fee asset, so a single balance covers both payments and transaction fees. Native and tokenized USDC interfaces represent the same underlying holding, so wallets treat them as one balance rather than two pots.
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Who are Arc's founding validators?
Circle's announced founding validator cohort includes BlackRock, DTCC, Visa, Mastercard, Standard Chartered, and Circle itself. The model combines open, permissionless application building with a permissioned validator set.
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Why is Arc important in the Circle vs Tether competition?
Circle reported $73.3 billion of USDC in circulation at the end of June, versus roughly $184.6 billion of USDT. By making USDC the asset needed for both payments and fees on Arc, Circle aims to create structural demand that encourages users to hold larger, ongoing USDC balances.
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Are Arc's privacy features available at launch?
No. Arc advertises opt-in privacy, but its execution documentation still lists Arc Privacy Sector and Stablecoin Services as planned and unavailable at the public mainnet launch.
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