Arc is a new layer-1 blockchain platform developed by Circle, a leader in stablecoin technologies. It is designed specifically to facilitate finance applications centered on stablecoins. Arc’s public testnet was launched in October 2025, with a mainnet beta rollout anticipated in 2026. This blockchain aims to address critical infrastructure challenges that have previously limited the broader institutional adoption of stablecoins. By focusing on stablecoin applications, Arc seeks to enhance the ability of stablecoins to operate across various blockchains and within traditional financial systems.
Arc offers instant and irreversible transaction settlement, described as deterministic finality. The platform is a layer-1 blockchain developed by Circle and is designed specifically to support stablecoin-based finance. Deterministic finality is listed among the protocol’s core technological features and is intended to provide immediate, non-reversible transaction settlement within the network.
Fees on Arc are priced in stablecoins and are directed to an on-chain Arc Treasury. The network denominates all fees in USDC. The protocol can also support other stablecoins as gas through a paymaster system. Using USDC as native gas is described as a way to eliminate the need for volatile tokens to pay transaction fees.
Arc’s fee model builds on Ethereum’s EIP-1559 architecture but replaces the immediate base-fee adjustment with a weighted moving average of network demand to smooth fees. The design retains the EIP-1559 heritage while introducing the weighted moving average mechanism to reduce fee volatility. Fees remain priced in stablecoins under this model.
Arc’s consensus layer is powered by Malachite, a Byzantine Fault Tolerant engine based on Tendermint. Validator selection on the network is currently permissioned. The project includes plans to transition validator selection to a permissioned Proof-of-Stake model.
Arc supports stablecoin liquidity across blockchains and traditional financial systems through Circle’s interoperability services. Circle aims to enable USDC to move across the blockchain ecosystem with Arc’s fast finality, native gas, and interoperability services (CCTP and Gateway). These interoperability services are presented as channels for moving stablecoin liquidity between networks and into traditional financial systems. The network can also support other stablecoins as gas through a paymaster system.
Arc includes optional privacy features that are described as supporting regulatory compliance, allowing privacy to be configured to meet real-world obligations. The protocol denominates all fees in USDC and uses USDC as native gas, which eliminates the need for volatile tokens to pay transaction fees. Fees collected on the network are directed to an on-chain Arc Treasury. This fee structure is part of Arc’s stablecoin-focused design.
The GENIUS Act was signed into law in July 2025 by President Donald Trump, a development that contributed to growing interest in stablecoins. These regulatory and interoperability developments form the contextual backdrop for Arc as a stablecoin-focused platform.
Arc is a stablecoin-focused layer-1 blockchain developed by Circle that delivers fast, deterministic finality and a fee model denominated in USDC to provide more predictable costs. It includes optional privacy features intended to support regulatory compliance and interoperability services such as CCTP and Gateway to enable USDC liquidity across blockchains and traditional financial systems. By combining native stablecoin gas, an on-chain Arc Treasury fee flow, and consensus powered by Malachite, Arc is positioned as infrastructure to address barriers to institutional stablecoin adoption and facilitate stablecoin liquidity across ecosystems.
