Circle Launches Arc Mainnet With USDC as Network Fee Currency
Circle Internet Group has launched Arc, a Layer 1 blockchain built for financial markets, payments and automated economic activity, with USDC serving as the network’s transaction-fee currency.
According to Circle, the Arc mainnet begins operations with more than 100 applications and over 100 institutional and ecosystem builders. Its initial validator group includes major financial and payments companies such as BlackRock, Mastercard, Visa, DTCC, ICE, MoneyGram, Standard Chartered, SBI Group and Worldpay.
Arc is designed to provide settlement in about one second while allowing users to pay network fees directly in USDC rather than acquiring a separate, potentially volatile native token. Circle said its Payments Network is also connected to Arc, supporting cross-border transfers designed to settle at low cost and with near-instant finality.
Circle Chief Executive Jeremy Allaire described Arc as the company's most significant launch since USDC.
Arc Targets Institutional Finance and Automated Payments
The blockchain is designed to support automated financial agents capable of handling tasks such as payments, trade execution, liquidity routing and other authorized financial operations for businesses.
Circle said USDC represented 98.8% of agent-driven transaction volume processed through the x402 payment standard, highlighting the stablecoin's role in automated payments.
Developers can also use Circle Agent Stack, which provides controlled wallets, nanopayment capabilities and marketplace functions for applications involving automated financial activity. Arc Portal allows users to fund agent wallets, establish spending limits, delegate tasks and monitor activity through a single interface.
Institutional participation extends beyond Arc's validator network. Banks, exchanges, custodians, asset managers, payment companies and wallet providers are among the organizations supporting the ecosystem.
Aave and Morpho are supporting lending markets on Arc, while Uniswap, Aero and fomo provide initial trading infrastructure.
Arc Adds Support for Tokenized Assets
Arc is also designed to accommodate tokenized financial and digital assets. Supported use cases include Circle's USYC, BlackRock's BUIDL, private-credit instruments and tokenized Bitcoin.
The network's development has already involved significant testing. Circle said Arc's testnet processed more than 700 million transactions over one year, while developers built more than 1,200 projects.
Arc is compatible with Ethereum development tools, allowing developers to deploy existing Solidity contracts without extensively rebuilding their applications for the new network.
The combination of Ethereum compatibility, USDC-based fees and institutional participation positions Arc around financial applications where predictable transaction costs and settlement speed are important.
Circle Mints 10 Billion ARC Tokens for Future Development
Circle has separately minted 10 billion ARC tokens as a technical milestone associated with potential future security, governance and network utility.
The company has emphasized that the minting of ARC does not guarantee that the token will be publicly released.
Circle's roadmap includes a potential transition to proof-of-stake consensus in 2027, expanded privacy capabilities, specialized network sectors and network capacity exceeding 100,000 transactions per second.
Even if Arc moves toward proof-of-stake, Circle plans for USDC to remain the currency used to pay network transaction fees.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.