Circle, the issuer of the USDC stablecoin, launched Arc, a layer-1 blockchain designed for stablecoin-focused applications. The network went live on September 16, 2026, following a public testnet that launched in October 2025 and processed over 700 million transactions.
Arc utilizes a permissioned consensus model powered by the Malachite BFT engine. Validators include major financial institutions such as BlackRock, Mastercard, Visa, and State Street. The network currently operates on proof of authority, with a potential transition to proof-of-stake planned for 2027.
The platform features deterministic finality, predictable fees denominated in USDC, and optional privacy tools for regulatory compliance. It also includes built-in support for AI agent transactions and interoperability services like CCTP to facilitate USDC movement across different blockchain ecosystems.
In May 2026, Circle conducted a $222 million token presale for the native ARC token, achieving a fully diluted valuation of $3 billion. The round was led by Andreessen Horowitz with a $75 million investment. The initial supply of ARC tokens is 10 billion.
The token allocation reserves 60% for the ecosystem, 25% for Circle, and 15% for a long-term reserve. Circle reported that revenue from the ARC token presale contributed to an increase in its full-year guidance for other revenue to between $310 million and $330 million.
