Circle Unveils Arc: USDC-Powered EVM Layer1 Blockchain

Published: 2025-08-13 14:24:35 |

Circle has unveiled Arc, an enterprise-grade, EVM-compatible Layer1 blockchain powered by USD Coin (USDC) and optimized for stablecoin applications. Arc uses USDC as its native gas token and features a built-in FX engine, optional transaction privacy, and sub-second settlement. The Arc whitepaper targets 3,000 TPS and sub-350ms finality with 20 validators, with scope for higher throughput under alternative setups. A public testnet is slated for fall 2025, followed by a mainnet beta in 2026, and Arc will fully integrate with Circle’s existing infrastructure while staying interoperable with partner chains to support enterprise payments, foreign-exchange, and capital markets use cases. The announcement follows Circle’s $1.2B IPO and Q2 results, which saw USDC circulation reach $65.2B, total revenue grow 53% to $658M, and adjusted EBITDA rise 52% to $126M despite a $482M net loss.

Neutral

While launching Arc enhances USDC’s on-chain utility by making it the native gas token on a new enterprise-grade blockchain, USD Coin remains a pegged stablecoin with minimal price volatility. Traders may see increased transaction volume and usage, but the USDC price will likely stay stable around its $1 peg, resulting in a neutral impact on its market price.