Circle Unveils Arc: Stablecoin-Powered Blockchain Built for Global Finance

Arc aims to serve as “an enterprise‑grade foundation for stablecoin payments, foreign exchange, and capital markets applications.” The network is Ethereum Virtual Machine (EVM) compatible, meaning it can support smart contracts and apps designed for Ethereum without modification. Notably, Arc uses USDC as its native gas token, allowing users to pay transaction fees in stablecoins rather than volatile cryptocurrencies. It promises sub‑second settlement finality, an integrated foreign‑exchange engine, and opt‑in privacy controls that users can enable for selective confidentiality. Circle’s leadership envisions Arc as “the home for stablecoin finance,” with high‑speed, regulated transactions at its core. The blockchain is expected to debut in a public testnet later in 2025.

Arc is one component of Circle’s broader vision to establish a “full‑stack platform for the internet financial system,” with stablecoins at its core. In its latest earnings report, Circle affirmed this ambition and revealed its Q2 financial results. Circle’s revenue and reserve income jumped 53% year‑over‑year, reaching $658 million, driven by rising USDC circulation and renewed institutional demand.

Circle is expanding its enterprise offerings through the rapidly growing Circle Payments Network, which now powers cross-border transfers for fintech partners like RedotPay, Conduit, Alfred Pay, and Tazapay. At the same time, its strategic partnership with Fiserv is designed to deliver USDC-powered payments capabilities to thousands of financial institutions, marking meaningful progress in institutional stablecoin adoption.

Arc addresses a long‑standing challenge in crypto‑native banking: volatility. By making USDC the native gas token, Arc removes price swings from transaction costs, making everyday use of blockchain-native money more practical and predictable for enterprises. Moreover, its rapid settlement times and privacy options aim to satisfy the operational demands of tokenized asset markets, cross‑border emerging-market payments, and FX platforms. Such features could pave the way for deeper blockchain integration across mainstream financial systems.

Circle is advancing its payments infrastructure on two fronts. It has launched the Circle Payments Network (CPN), a blockchain-powered system offering near-instant, compliant cross-border payments using USDC and EURC. Separately, Circle is building Arc, a high-performance Layer-1 blockchain optimized for stablecoin finance. While logical to expect interoperability, there is no official confirmation of Arc being directly integrated into CPN at this time.

Further reinforcing its enterprise strategy, Circle recently integrated USDC into FIS’s Money Movement Hub, allowing financial institutions to offer compliant stablecoin transactions through traditional banking rails powered by Circle’s infrastructure. This partnership exemplifies the firm’s push to make blockchain-native money tools accessible to mainstream finance.

Circle’s IPO in June 2025 injected significant capital and visibility. Its stock has surged multiple times above its debut price amid solid revenue growth. The timing couldn’t be more opportune. Stablecoins are increasingly regarded as key infrastructure in digital finance, especially as regulation clarifies, such as through the U.S.’s GENIUS Act, and institutions seek smoother on-chain tooling.

Arc represents a bold step toward more efficient, stable, and user-friendly financial infrastructure built around stablecoins. Its enterprise capabilities, privacy controls, and native USDC fees offer a rare blend of compliance, scalability, and stability. As Circle gears up for Arc’s public beta later this year, the broader financial ecosystem, including banks, fintechs, FX traders, and institutional investors, will be watching closely. Arc may well become the prototype for future blockchains built not just for DeFi, but for regulated finance.