Circle has announced plans to launch ARC, a new Layer 1 blockchain engineered from the ground up, to serve the growing universe of stablecoins and institutional finance. This announcement was made in Circle’s 2025 second-quarter report unveiled today, August 12.
According to the press release, ARC will be an EVM-compatible, open Layer 1 blockchain where USDC itself will serve as the native gas token. This marks a strategic shift for both Circle and the stablecoin sector, as the ARC L1 aims to put digital dollars at the very core of blockchain operations.
With a built-in FX engine and sub-second settlement finality, ARC offers institutional-grade infrastructure for capital markets, payments, and cross-border finance.
Moreover, the project plans to debut in public testnet in the fall of 2025, with full integration into Circle’s platform and interoperability across dozens of supported partner blockchains.
ARC targets financial institutions and payments providers seeking regulatory clarity, security, and speed. It enables this by using USDC as native gas, an integrated FX engine, opt-in privacy controls, and a built-for-scale design.
Rationale Behind Circle’s ARC Launch
Stablecoin ecosystems have exploded in relevance, handling trillions of dollars in annual transaction volume and serving as a core liquidity layer for both crypto-native and traditional financial markets. Until now, Circle’s USDC operates across 23 separate blockchains.
However, most of its volume focuses on just a handful, with Ethereum and Solana leading the way. ARC is Circle’s answer to fragmentation: an optimized, compliant, performance-first chain purpose-built for stablecoins.
The relevance of dollar-backed stablecoins in the future of digital payments receives validation by regulatory developments in 2025, such as the GENIUS Act’s approval and Circle’s application for a national trust bank charter.
Circle’s dedication to influencing this technological and legislative change is proven by the creation of ARC, which provides financial institutions, fintechs, and multinational enterprises with the tools they require for next-generation payments and settlements.
The launch of ARC is not an isolated incident. The market is ready for ARC’s debut thanks to Circle’s recent advancements, including its Payments Network and alliances with industry titans like FIS, Fiserv, Binance, and OKX. Circle enables banks, payment processors, and DeFi platforms to utilize stablecoins for FX transactions, collateral management, capital markets activities, and cross-border money transfers by integrating ARC Layer-1 into their ecosystem.
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