A New Era for Stablecoin Transactions with 2025 Blockchain Launch

Circle has announced the launch of Arc, an open Layer-1 blockchain focusing on stablecoins, with a public testnet planned for late 2025.

Arc aims to facilitate stablecoin transactions with USDC as the native gas, potentially impacting the broader stablecoin ecosystem and offering interoperability with existing EVM tools.

Circle’s Arc Blockchain to Launch with EVM Compatibility

The introduction of Arc is expected to influence both stablecoin usage and Ethereum-based ecosystems due to its EVM compatibility. This capability allows developer interoperability and may drive new opportunities within Ethereum and other EVM-compatible ecosystems, widening potential liquidity routes.

Market reactions have focused on Arc’s potential to innovate in the stablecoin space. Jeremy Allaire’s emphasis on transaction-fee growth and instant finality has garnered attention, positioning Circle to pioneer stablecoin payment advancements.

“We’re very excited about Arc,” highlighting “sub-second instant finality” and “configurable privacy controls,” and emphasizing ambitions to “underpin all stablecoin payments” with growing transaction-fee revenue sources.

Arc’s Testnet Set to Shake Up Stablecoin Market

Did you know? Arc follows a history of attempts to tailor Layer 1 blockchains for payments, comparable to previous industry efforts targeting fiat fee stability while adding enterprise-grade features.

According to CoinMarketCap, USDC remains a key player with a stable price of $1.00, a market cap of $66.18 billion, and a 24-hour trading volume of $19.71 billion. Recent price changes remain minimal, indicating stable market conditions as of August 12, 2025.

The Coincu research team suggests that such initiatives aligning with stablecoin-focused strategies could fuel regulatory discussions. Analysts point to increased transaction-fee avenues as likely growth areas, emphasizing the importance of stability and compliance in financial ecosystems.