Get to Know Arc by Circle: Purpose-Built Layer-1 Blockchain for Stablecoins

For decades, traditional financial systems have struggled with fragmentation, slow settlement, and limited accessibility. Public blockchains emerged as a solution, offering transparent, programmable money.

However, most existing chains were not built for stablecoins or enterprise use, leaving fintechs, banks, and global businesses facing high fees, volatility, and privacy concerns.

Circle, the issuer of USDC, has addressed these challenges by introducing Arc, a layer-1 blockchain designed specifically for stablecoin finance.

Arc integrates USDC-based gas fees, sub-second settlement, opt-in privacy, and compatibility with Circle’s broader ecosystem, providing developers and institutions with a reliable, enterprise-grade infrastructure for payments, FX, and tokenized assets.

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Key Takeaways

1. Purpose-built for stablecoins: Arc offers predictable USDC fees and sub-second settlement for enterprise-grade applications.

2. Integrated financial tools: Supports cross-border payments, FX markets, tokenized assets, and programmable payment systems.

3. Developer-friendly and open: EVM-compatible and open-source, enabling collaboration and composability across the multichain ecosystem.

What Is Arc?

Arc is Circle’s layer-1 blockchain engineered from the ground up for stablecoin finance. Unlike general-purpose blockchains, Arc is optimized for enterprise and institutional use, providing predictable, low-cost transactions while preserving compliance and privacy.

Key features of Arc include:

USDC as Native Gas

Arc eliminates volatile native tokens, allowing fees to be paid in USDC. This predictability makes it easier for enterprises to manage treasury operations and plan expenses without exposure to crypto price swings.

Sub-Second Settlement

Transactions on Arc reach finality in under one second. Powered by the Malachite consensus engine, this deterministic settlement enables high-speed financial operations such as payments, FX trades, and capital market settlements.

Opt-In Privacy

Arc offers shielded balances and transactions. Enterprises can protect sensitive financial information while maintaining regulatory compliance, ensuring data security without sacrificing transparency where needed.

Read Also: Is Circle Creating Its Own Bank? Looking at the USDC Maker

Platform Integration

Arc is fully integrated with Circle’s ecosystem, including payments, wallets, contracts, and cross-chain transfer protocols.

This integration enables developers and businesses to leverage existing Circle infrastructure while building new stablecoin-native applications.

By combining speed, predictability, and enterprise-grade features, Arc provides a stable and scalable foundation for both current and emerging financial use cases.

What Can You Build on Arc?

Arc is designed to support a wide range of stablecoin-native applications. Some of the most promising use cases include:

Cross-Border Payments

With USDC and instant settlement, Arc simplifies international money transfers. Businesses can send funds quickly and cost-effectively, leveraging Circle’s Payments Network for automated conversion and settlement in local currencies.

Stablecoin FX Markets

Arc enables perpetual markets built on stablecoin pairs. Traders can go long or short on currency pairs with real-time pricing and atomic peer-to-peer settlement, while liquidity grows as more stablecoins are issued on the network.

Onchain Credit with Offchain Trust

Developers can design lending protocols that integrate offchain signals such as identity, reputation, or financial history.

This allows underbanked businesses and users to access responsible credit while leveraging onchain transparency.

Tokenized Assets and Capital Markets

Arc supports delivery-versus-payment (DvP) and margin collateral for tokenized securities, commodities, and structured products.

Instant settlement and predictable fees make it easier to bring traditional financial instruments onchain.

Read Also: CRCL Stock Price Analysis – Circle Internet Group (NYSE: CRCL)

Programmatic Payments and Agentic Commerce

Arc’s predictable fees and sub-second settlement enable automated transactions and agentic systems. Developers can build subscription services, procurement processes, and AI-mediated marketplaces where machines transact securely and efficiently.

Arc’s flexibility allows both emerging developers and established enterprises to experiment and innovate within a stablecoin-native ecosystem while maintaining interoperability with the broader multichain landscape.

Why Arc Matters for the Future of Finance

Arc represents more than a new blockchain. It embodies a vision for the future of financial infrastructure, built on five guiding principles:

Purpose-Built for Stablecoins

Unlike general-purpose chains, Arc focuses on financial applications that rely on stablecoins, including payments, FX, and capital markets operations.

Open and Composable

Arc is open to all developers, encouraging collaboration and contribution. Its EVM compatibility ensures that existing tools and frameworks can be used, reducing barriers to entry.

Market-Neutral and Multichain-Aligned

Arc strengthens the broader blockchain ecosystem, enabling liquidity and partnerships across multiple stablecoin networks without restricting access to other chains.

Read Also: CRCL Stock Price Prediction 2025-2030: A Comprehensive Analysis

Coordinated, Not Controlled

Arc provides infrastructure that aligns fintechs, banks, and enterprises, fostering collaboration rather than building a closed ecosystem.

Trusted Infrastructure

Built with reliability and long-term operational excellence in mind, Arc combines transparency, security, and governance practices that meet enterprise standards.

By addressing the limitations of existing public blockchains and creating a dedicated foundation for stablecoin finance, Arc empowers businesses and developers to unlock new financial opportunities.

Conclusion

Circle’s Arc blockchain introduces a new era for stablecoin finance. By offering USDC-based gas fees, sub-second settlement, opt-in privacy, and full platform integration, Arc addresses the limitations of traditional blockchains for enterprise applications.

It enables cross-border payments, FX markets, tokenized assets, programmable payments, and more, providing both developers and institutions with a stable, reliable, and flexible infrastructure.

Arc also demonstrates Circle’s commitment to transparency and innovation, combining open-source development with enterprise-grade functionality.

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FAQ

What is Arc by Circle?

Arc is a purpose-built layer-1 blockchain optimized for stablecoin finance, offering predictable USDC gas fees, sub-second settlement, and enterprise-grade features.

How does Arc handle transaction fees?

All fees on Arc are paid in USDC, eliminating exposure to volatile native tokens and enabling predictable, dollar-denominated costs for users and businesses.

When will Arc be available?

Arc will enter private testnet in the coming weeks, with a public testnet expected this fall and a mainnet beta planned for 2026.

What types of applications can be built on Arc?

Developers can create cross-border payments, stablecoin FX markets, onchain credit, tokenized financial assets, and automated programmable payment systems.

Is Arc compatible with existing developer tools?

Yes, Arc is EVM-compatible, allowing developers to use familiar Ethereum frameworks and tooling while building on a blockchain purpose-built for stablecoins.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.