ARC Blockchain Explained – Circle’s Game-Changer for Stablecoin Finance

Have you ever wondered how digital money could make global payments faster and cheaper? Blockchain technology is at the heart of this change. It is like a secure digital ledger that records transactions without needing banks in the middle. Now, Circle is taking this a step further with ARC, a new blockchain designed just for stablecoins. Stablecoins are cryptocurrencies that hold steady value, often tied to real money like the US dollar. ARC aims to make using them even better for businesses and everyday people.

ARC is an open layer created by Circle, the issuer of the popular USDC stablecoin. Layer-1 means it is a base network where everything starts, unlike add-ons built on top of others. Circle announced ARC on August 12, 2025, calling it “an open Layer-1 blockchain purpose-built for stablecoin finance.” Its main goal ? Fix problems with current blockchains, such as high fees, slow speeds, and privacy issues, especially for financial uses. For example, many blockchains require volatile cryptocurrencies for fees, which can change in price quickly. ARC avoids that by using USDC as its native gas token. Gas is like fuel for transactions, so this keeps costs low and predictable in dollars.

How does ARC work?

It is built to be compatible with the Ethereum Virtual Machine, or EVM. That means developers can use tools they already know from Ethereum to build apps on ARC. At its core is a high-performance engine called Malachite, which handles consensus, the process where the network agrees on transactions. This allows for sub-second settlement finality, meaning transactions are confirmed and irreversible in under one second. It starts with a permissioned Proof-of-Authority system, where trusted validators check transactions, and plans to shift to a permissioned Proof-of-Stake model later for broader participation.

One standout feature is the built-in foreign exchange, or FX engine. This is an institutional-grade system for price discovery and peer-to-peer settlement that runs 24/7. It lets users trade stablecoins like USDC and EURC without leaving the blockchain. Another key aspect is opt-in privacy. Users can shield balances and transaction amounts while keeping addresses visible, helping with compliance rules. ARC also integrates fully with Circle’s other products. For instance, it supports the Circle Payments Network for onchain settlements, and tools like Mint for creating stablecoins, Wallets for storage, and Cross-Chain Transfer Protocol for moving assets between blockchains. USDC and USYC are native assets from day one, with EURC also supported.

How does it benefit us & the industry ?

ARC brings big benefits for users. Fees are dollar-based and low, so no surprises from crypto price swings. It is enterprise-grade, meaning it is reliable for big companies handling sensitive data. Privacy options let businesses follow laws without exposing everything. Plus, it is open and composable, so anyone can build on it and connect to other systems. This could reduce silos in stablecoin liquidity, making money move more efficiently across the world.

Think about real-world uses. ARC is perfect for cross-border payments, where sending money abroad is often slow and expensive. With fiat-backed stablecoins and instant settlement, businesses can pay suppliers overseas in seconds. It also supports stablecoin FX perpetuals, which are like ongoing trades for currency values. In capital markets, it can handle settlements for assets like bonds or stocks onchain. Even for everyday things, it enables agentic commerce, where smart programs handle buying and selling automatically. Circle sees ARC as a hub for stablecoin apps, connecting to dozens of other blockchains via tools like Gateway.

Road Ahead

LARC is not live yet. A private testnet starts in the coming weeks, followed by a public testnet this fall. The mainnet beta launches in 2026. Developers can request early access at arcnetwork.xyz. The core software will be open-source under a permissive license, encouraging community contributions.

ARC represents a focused step forward in blockchain for finance. By prioritizing stablecoins and real-world needs, it could make digital money more accessible and trustworthy. As Circle puts it, “Arc is where trusted digital money meets enterprise-grade onchain infrastructure.”