Circle, the issuer of USDC, launches Arc, a layer-1 blockchain designed for stablecoin-native finance.
DeFi & Yields ·
Circle, the issuer of USDC, has launched Arc, a layer-1 blockchain designed to support stablecoin-native applications and address infrastructure gaps that have limited institutional adoption of stablecoins. The network uses USDC as its native gas token, features a built-in foreign exchange engine, and offers optional privacy controls compatible with regulatory requirements. A public mainnet is scheduled to launch on September 16, 2026, and an ARC token has been announced.
Arc addresses several challenges that Circle identifies in existing blockchains: volatile fees, probabilistic settlement with chain reorganization risk, limited privacy for commercial transactions, and fragmented liquidity across networks. The platform achieves deterministic finality—instant and irreversible settlement—and implements a fee model based on Ethereum's EIP-1559 but using a weighted moving average of network demand to keep costs predictable and priced in stablecoins. A public testnet launched in October 2025, and Circle reported that the private mainnet currently operates with more than 100 ecosystem and institutional builders.
The platform's interoperability with traditional finance systems and other blockchains remains to be fully demonstrated at mainnet scale. Details on Arc's consensus mechanism and the specific mechanics of its optional privacy features have not been fully disclosed.