Circle to Launch Arc – New Layer-1 Blockchain for Stablecoins, Payments, and FX

Circle, the company behind the USDC stablecoin, announced that in 2025 it will launch its own Layer-1 blockchain, called Arc.
The project promises to revolutionize digital payments, foreign exchange (FX), and decentralized financial applications by offering stable, USDC-denominated transaction fees.

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What is Arc?

Arc is a public, EVM-compatible (Ethereum Virtual Machine) network, allowing developers to easily migrate their applications from Ethereum or other compatible chains.
Unlike many blockchains, Arc uses USDC to pay for transaction fees, ensuring predictability and eliminating the volatility of cryptocurrencies like ETH or SOL.

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Key Features

1. USDC Transaction Fees

Predictable costs with no currency risk for businesses and users.

1. Built-in Foreign Exchange (FX) Engine

Fast conversions between stablecoins and digital currencies with on-chain liquidity.

1. Near-Instant Settlement

Transaction finality in sub-seconds, ideal for payments and financial markets.

1. Optional Privacy

Confidentiality features for corporate transactions while maintaining compliance.

1. High Performance and Interoperability

Seamless integration with the Circle ecosystem and other blockchains.

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Launch Timeline

Public Testnet: Expected between September and December 2025.

Mainnet (official launch): Planned by the end of 2025.

The announcement was made by CEO Jeremy Allaire, who emphasized the importance of Arc as part of Circle’s strategy to expand stablecoin adoption in the global financial system.

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Why It Matters

Businesses gain predictability with fixed USDC transaction fees.

International payments can be processed faster and at lower cost.

USDC ecosystem, with over $65 billion in circulation, could solidify as an industry standard.

Bridging traditional finance and blockchain, meeting regulatory requirements.

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Conclusion

Arc is not just another blockchain — it’s Circle’s bet to turn USDC into global financial infrastructure.
With features designed for businesses, developers, and end users, this network could become a milestone in the evolution of digital payments and stablecoins.

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