Circle has launched the mainnet of Arc, a new layer-1 blockchain built around its USDC stablecoin and aimed at stablecoin payments and capital-markets activity. The network starts with 11 founding validators, including BlackRock, DTCC, ICE, Mastercard and Visa, and went live after a testnet period in which Circle said Arc processed more than 700 million transactions in less than a year.
Arc is fully compatible with the Ethereum Virtual Machine, allowing existing Solidity smart contracts to run without changes. Unlike most layer-1 chains, Arc charges transaction fees in USDC rather than requiring a separate gas token, although it also includes a native ARC token with a fixed supply of 10 billion for security coordination, utility and governance.
Validator lineup and launch partners
The founding validator group includes BlackRock, DTCC, Galaxy, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, Visa and Worldpay. At launch, Circle also said more than 100 applications and institutional integrations were live on the network.
Those integrations span several parts of the digital asset stack. Circle listed banks including BNY, HSBC, Societe Generale and State Street; exchanges such as Binance, Coinbase, Kraken and OKX; DeFi protocols including Aave, Morpho and Uniswap; custody firms Anchorage, BitGo and Fireblocks; and wallets such as MetaMask, Phantom and Ledger.
How Arc is structured
Arc currently operates on a proof-of-authority model. Circle said it plans to move the network to proof of stake in 2027. The chain also offers sub-second, deterministic finality, a feature positioned toward applications that need predictable settlement speed.
Circle is also developing an optional privacy function for institutions. The feature would allow transaction details to be hidden behind view keys, though it is still under development and was not described as part of the finished mainnet feature set.
Backers frame Arc as infrastructure for stablecoins
In comments released with the launch, BlackRock's Robbie Mitchnick said purpose-built blockchains can help accelerate adoption of digital asset use cases and that Arc appears well positioned for stablecoin and payment activity at scale. Aave Labs founder Stani Kulechov said the network's speed and stablecoin-native design could help broaden onchain credit markets.
SBI Group chief executive Yoshitaka Kitao said the Japanese financial group would contribute to Arc's operation and governance as a founding validator. The statements underline Circle's effort to present the network as infrastructure for both crypto-native applications and large financial institutions.
Competition and the next step
Arc enters a growing market for blockchains designed around stablecoin settlement. The source article points to Tether's Plasma, launched in 2025 with a focus on zero-fee USDT transfers, and Tempo, which operates without a native token and pays validators in stablecoins.
Circle's pitch for Arc centers on its institutional validator roster and products such as StableFX for cross-currency settlement. The company is targeting uses including tokenized treasury funds, payment flows and commerce carried out directly by AI agents. The next confirmed network milestone is Circle's planned transition from proof of authority to proof of stake in 2027.
Source: www.blockhead.co