TLDR
- Circle has announced the launch of Ar, which is an open Layer-1 blockchain built for stablecoin finance.
- Arc is fully compatible with the Ethereum Virtual Machine and uses USDC as its native gas token.
- The network will allow users to pay transaction fees directly in USDC for faster and simpler operations.
- Circle will launch a public testnet for Arc later in 2025 to enable developers and enterprises to build on it.
- Arc includes features such as an integrated stablecoin FX engine, sub-second settlement finality and opt-in privacy.
Circle has launched Arc, an open Layer-1 blockchain designed to power stablecoin-focused payments, foreign exchange, and capital markets infrastructure. The network is fully compatible with the Ethereum Virtual Machine and will use USDC as its native gas token. Arc will allow transaction fees to be paid directly in USDC, reducing users’ conversion needs.
The company confirmed a public testnet will launch later in 2025, enabling developers to begin building on the network. Arc will integrate directly with Circle’s existing platform and remain interoperable with other blockchains that support USDC. The network aims to optimize stablecoin transactions for faster speed, lower cost, and stronger compliance.
Circle stated, “Arc is purpose-built for stablecoin finance,” emphasizing its integrated FX engine, sub-second settlement finality, and opt-in privacy features. These capabilities will target global payments, cross-border settlements, and institutional market operations.
Arc to Support Enterprise-Grade Stablecoin Transactions
Arc focuses on delivering a low-latency environment where stablecoins can operate efficiently without the congestion seen in broader blockchain ecosystems. Circle designed the platform to address scaling limits and transaction delays on larger chains. The system will also provide a compliance-ready structure for regulated financial environments.
The integration of USDC as the gas token removes additional token swaps, streamlining enterprise operations. This approach supports predictable transaction costs and improved user experience. By embedding an FX engine, Arc aims to facilitate currency conversions directly on-chain.
Circle plans for Arc to become an essential backbone for digital finance. Its design reflects the company’s goal of merging blockchain performance with financial market standards.
Circle Reports Growth and Market Momentum
The Arc announcement coincided with Circle’s Q2 2025 financial results, marking its first quarter as a publicly listed company. Circle completed a $1.2 billion IPO in June, signaling strong market confidence.
During the quarter, USDC circulation rose 90% year-over-year to $61.3 billion and reached $65.2 billion by August 10. Revenue and reserve income increased 53% year-over-year to $658 million, while adjusted EBITDA grew 52% to $126 million.
Following the Senate’s approval of the GENIUS Act, Circle’s stock rose nearly 34%, benefiting from the new federal stablecoin framework. Later this year, Arc’s public testnet will be the first step toward full deployment.
The post Circle Launches Arc Blockchain to Power Global Stablecoin Transactions appeared first on Blockonomi.
Source: https://blockonomi.com/circle-launches-arc-blockchain-to-power-global-stablecoin-transactions/