Circle launched Arc, an EVM-compatible blockchain purpose-built for financial markets, achieving within a single week what most Layer 1 networks spend years trying to accomplish. EVM compatibility means Arc runs the same execution environment as Ethereum, letting developers port existing Ethereum-based applications to the network with minimal changes. In its opening days, the network is already tapping into the $74 billion USDC supply circulating across more than 30 chains, topping the stablecoin growth leaderboard.

The mainnet went live on September 16. Circle deployed $649 million in USDC and $7 million in EURC, its euro-denominated stablecoin, on Arc at launch, backed by an ecosystem of more than 100 participants that includes some of the biggest names in traditional finance. The launch also broadens Circle's role: with Arc, the stablecoin issuer is operating its own settlement layer, not only issuing the currency that moves across it.

What Arc Is

Arc features sub-second transaction finality and targets fees of about $0.01 per transaction, performance levels aimed at payment and settlement workloads. USDC serves as the network's native gas and settlement asset, meaning every transaction on the network runs through Circle's stablecoin. This design ties routine network costs to a dollar-denominated asset rather than a volatile native token.

The launch roster includes BlackRock, the world's largest asset manager; Visa and Mastercard, the two largest global payment card networks; and DTCC, which provides post-trade clearing and settlement for US securities markets. On the DeFi side, Arc integrated with lending protocols Aave and Morpho, along with decentralized exchange Uniswap, from day one — giving the chain functioning money markets and trading infrastructure at genesis.

The ARC Token and Its $3 Billion Valuation

Circle minted 10 billion ARC tokens at the genesis event, splitting the supply across three allocations: 60% to an ecosystem development fund, 25% retained by Circle, and 15% set aside for long-term reserves.

A $222 million presale preceded the launch, pricing the full 10 billion-token supply at a $3 billion fully diluted valuation. The token is designed to eventually serve governance, utility, and coordination functions across the network.

Circle has outlined plans to transition Arc to a proof-of-stake consensus mechanism in 2027, at which point ARC tokens would play a central role in network validation. Until then, the network's transaction layer will continue to run on USDC.

USDC's Broader Position

The total circulating supply of USDC stood at approximately $74.22 billion as of September 14, shortly before Arc's launch. Arc's cross-chain infrastructure supports the Cross-Chain Transfer Protocol, which enables USDC movement across more than 30 networks. The network also supports more than 22 fiat-linked stablecoins, positioning Arc as a broader multi-currency settlement layer. Operating its own chain gives Circle a settlement rail it controls directly, complementing USDC's movement across the third-party networks it already reaches.

Jeremy Allaire, Circle's CEO, has described Arc as a pivotal advancement in the company's trajectory. With the mainnet live, token allocations set, and the 2027 proof-of-stake migration on the roadmap, Arc's first months of stablecoin deployment will show whether launch-week activity translates into sustained network usage.

Source: CryptoBriefing