Arc, Circle’s layer-1 blockchain, has successfully launched its mainnet with a full suite of assets, markets, and applications from the very first block, along with a validator lineup featuring some of the biggest names in traditional finance.
Using Circle USD for Gas Fees
Unlike the operating models of Ethereum or Solana, Arc selects USDC as its official gas fee token. This model eliminates the requirement to hold cryptocurrencies such as ETH or SOL to execute transactions, while maintaining low and stable fees unaffected by the price volatility of a network token.
On the technical infrastructure side, Arc features deterministic finality that optimizes settlement completion to under 1 second, completely eliminating the probabilistic confirmation wait times seen on Ethereum. To enhance future security standards, the platform also integrates an option for post-quantum signatures.
Additionally, with support from Circle CCTP and Gateway, Arc provides cross-chain connectivity and interoperability with over 20 blockchains, enabling seamless and easy asset transfers.
Validator Lineup: BlackRock, Visa, Mastercard, DTCC
Right from its mainnet launch, Arc brought together a validator lineup comprising leading global financial institutions such as BlackRock, DTCC, Galaxy, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, Visa, and Worldpay (now Global Payments). Beyond merely connecting systems, these global payment network operators, asset managers, and clearinghouses directly participate in running Arc’s infrastructure.
In addition, numerous prestigious banking institutions including BNY, BTG Pactual, Commerzbank, HSBC, Societe Generale, Standard Chartered, State Street, and others are deploying products on the platform. Circle affirms that Arc operates continuously 24/7 uninterrupted by traditional trading hours, comprehensively serving financial needs such as intraday FX trading, cross-border remittances, corporate treasury management, and crypto asset issuance.
ARC Token: Minted but Not Yet Launched
In the US, Circle recently completed the genesis mint for the ARC token with a total supply of 10 billion tokens. This event marks the milestone of Circle becoming the first public company to mint a network token for an entirely new Layer-1 blockchain.
Even so, Circle affirms that the ARC token has not yet been officially released to the public, and all related plans remain at the exploratory stage. By design, the ARC token serves as a coordination tool for governance, security, and utility within the Arc ecosystem, while USDC continues to be used for transaction fees on the network. The roadmap to transition from Proof of Authority to Proof of Stake is slated for 2027.
In short, users should absolutely not trade or purchase any “ARC” tokens circulating on the open market at this time. All ARC tokens currently appearing on the market are not officially issued by Circle.
Assessment
Transforming from a stablecoin issuer into a blockchain infrastructure operator, Arc represents one of Circle’s most pivotal steps forward. Enlisting major financial institutions such as BlackRock, Visa, Mastercard, and DTCC as validators reflects the powerful appeal of blockchain infrastructure to traditional finance, reaching far beyond typical DeFi use cases. Furthermore, adopting USDC as the gas payment token alongside settlement under 1 second has decisively dismantled two core barriers that have kept institutions hesitant about crypto: cost volatility and processing latency.
Even so, Arc enters the market at a time when competition is at its peak: Solana dominates in processing speed, Ethereum firmly retains the crown in total value locked (TVL), and numerous other L1 blockchains continue to emerge. While backed by the strong foundation of USDC’s market standing and extensive institutional relationships, Circle’s greatest challenge will be translating these advantages into real-world adoption at scale. Moving forward, the roadmap to transition to PoS in 2027 and the official launch plans for the ARC token will be key milestones to watch closely.