Circle Announces Arc Blockchain Launch With USDC as Native Gas

Circle, the US-based company behind the USDC stablecoin, is preparing to launch its own layer-1 blockchain later this year.

The network, called Arc, will be compatible with the Ethereum Virtual Machine (EVM) and designed specifically for stablecoin-powered transactions and financial applications.

The move comes alongside Circle’s Q2 2025 earnings report, which showed a 53% year-over-year jump in total revenue and reserve income, reaching $658 million.

Arc: a layer-1 network built around USDC

Arc will debut as a public testnet and introduce a unique twist, USDC itself will serve as the native gas token, meaning transaction fees can be paid directly with the stablecoin rather than a separate network token.

According to Circle, Arc is “purpose-built for stablecoin finance,” supporting use cases in payments, exchange, and capital markets.foreign

The blockchain will feature an integrated stablecoin FX engine, sub-second transaction finality, and optional privacy controls. Circle also stated that Arc will be fully interoperable with its broader ecosystem, remaining connected to the 24+ networks where USDC is already supported.

This includes Ethereum, currently the largest network for USDC with $42.6 billion in supply out of the stablecoin’s $65.6 billion market cap.

Circle’s broader strategy and market position

Arc marks a new step in Circle’s push to build a full-stack platform for the “internet financial system.” By controlling the underlying blockchain, Circle can directly shape performance, security, and integration for USDC-based applications.

The company has long emphasized interoperability, and it confirmed that its services will continue to function across existing partner chains even after Arc’s launch.

The timing aligns with growing institutional and enterprise interest in blockchain-based payments, particularly stablecoins, which are increasingly seen as a bridge between traditional finance and crypto infrastructure.

Other Related Read/Listens

• Stripe’s $92B Leap Into Crypto: Meet “Tempo,” Its New Blockchain
• No More STG? LayerZero Proposes $110M Stargate Token Consolidation
• “KaitoFail?” New Rules Ignite War Between Big and Small Creator Accounts