Circle Launches Arc Blockchain to Power USDC Payments and Financial Services

Circle, the issuer of USDC, has announced the launch of its new EVM-compatible Layer-1 blockchain, named Arc, designed specifically to facilitate USDC-native payments and financial services [1]. The blockchain, which is expected to debut a public testnet in the fall of 2025, aims to streamline global financial transactions by leveraging USDC as its native gas token and integrating a stablecoin FX engine to improve settlement efficiency [2]. This development marks a structural shift for Circle, moving from a multi-chain interoperability strategy to operating its own blockchain infrastructure [3].

The Arc blockchain will be interoperable with over 20 existing blockchains where USDC is already issued, enabling seamless cross-chain operations and enhancing the utility of the stablecoin across multiple ecosystems [4]. By integrating USDC with existing financial systems, Arc is positioned to offer sub-second settlement finality, opt-in privacy controls, and improved cross-border payment solutions [5]. This level of integration aims to address inefficiencies in traditional financial infrastructure and provide a scalable solution for institutional adoption.

Circle’s strategy with Arc aligns with its broader vision to expand USDC's role in global finance. The blockchain will be fully integrated across Circle’s platform and services, reinforcing USDC’s position as a key utility in digital financial systems [6]. The company’s partnerships with entities like FIS and Fiserv are expected to further expand the reach of USDC-based transactions, enabling regulated and compliant payment capabilities both domestically and internationally [7].

The introduction of Arc represents a pivotal moment for the blockchain industry, particularly in how institutions manage liquidity and settlement processes. While the public testnet is still pending, the anticipated interoperability and performance enhancements suggest that Arc could redefine the standards for cross-border payments and capital market applications. The blockchain’s design emphasizes institutional-grade security and operational efficiency, potentially influencing broader market adoption once the network is fully operational [8].

By launching Arc, Circle is reinforcing its commitment to building a scalable and interoperable financial infrastructure. The platform is expected to enhance the capabilities of financial institutions and potentially drive innovation in blockchain-based payment systems. With USDC already widely adopted, the integration of Arc could further solidify the stablecoin’s role in the evolving digital finance landscape.

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[1] https://coinmarketcap.com/community/articles/689b4fc2dd35cc24e8f4c5ab/