What is Arc Network? Circle launches USDC payment stablecoin dedicated chain.

Arc Network is a new open-source Layer-1 blockchain launched by Circle, designed from the ground up specifically for native stablecoin applications. What is the core innovation of Arc Network? It uses USDC as its native Gas, offering low, predictable, dollar-denominated fees without the need to hold volatile cryptocurrencies.

What is Arc Network? Circle addresses the four major pain points of stablecoin finance

For decades, traditional financial systems have struggled with fragmentation, opacity, and limited access. Over the past decade, public blockchains have been utilized to address these issues through programmable money and transparent, permissionless infrastructure. However, for the vast majority of fintech companies, payment service providers (PSPs), financial institutions, and global enterprises, the promise of stablecoin finance often conflicts with the limitations of these systems.

Circle has repeatedly heard the same concerns while collaborating with large enterprises and leading stablecoin builders: “We need predictable costs that can be planned for.” “Our finance team cannot hold volatile crypto assets to pay for gas fees.” “We cannot move sensitive payment data on a public blockchain.” “Who should we call if we need help?”

Nowadays, even basic on-chain financial applications imply reliance on blockchains that did not consider stablecoins at the design stage. Although cross-chain interoperability has made progress, the liquidity of stablecoins is fundamentally still isolated, limiting capital efficiency. Launching new stablecoin applications to the market is equally challenging, often requiring coordination with multiple ecosystem partners across different blockchains, making it difficult to scale user acquisition and establish lasting network effects.

One fact has become clear: the industry needs blockchain infrastructure specifically built for stablecoin finance. The Arc Network has emerged, a brand new open Layer-1 blockchain designed from the ground up to serve the next era of stablecoin native applications.

Five Core Advantages of USDC Native Gas and Sub-second Confirmation

Arc is built by Circle, existing independently as its own independent ecosystem, introducing a new type of blockchain architecture that is optimized for stablecoin finance from the very first line. USDC, as the native Gas, provides low, predictable costs denominated in US dollars, without the need for volatile cryptocurrencies. This addresses the core pain points of corporate finance teams: they no longer need to hold volatile assets like ETH or SOL to pay for transaction fees, as all costs are denominated in stable US dollars.

The built-in forex engine provides an institutional-grade pricing system for price discovery and 24/7 peer-to-peer on-chain settlement. This is the unique advantage of Arc Network compared to other blockchains, as it allows for programmatic conversion and instant settlement between different stablecoins (such as USDC, EURC, JPYC) without relying on external DEX or CEX.

Instant finality is supported by Malachite, a high-performance consensus engine that provides finality settlement in under a second. Unlike Ethereum's probabilistic finality of 12-15 minutes, transactions on Arc cannot be reversed or rolled back once confirmed. This level of certainty is crucial for financial applications, especially for payments and securities trading that require instant settlement.

Arc Network's Five Core Advantages

USDC Native Gas: USD-denominated fees that are predictable and stable.

Built-in Forex Engine: Programmatic conversion between stablecoins, 24/7 instant settlement

Sub-second confirmation: <1 second final confirmation, 3,000-10,000+ TPS

Selective Privacy: The option to hide balances and transactions to meet compliance requirements.

Circle Cross-Platform Integration: Natively supports CPN, USDC, EURC, USYC, CCTP, etc.

The option to enable privacy features allows users and businesses to selectively mask balances and transactions to comply with their regulatory obligations. This design balances the need for transparency and privacy, maintaining the auditability of the blockchain while protecting sensitive business information.

Five Major Application Scenarios and 2026 Roadmap

Arc aims to catalyze a new type of stablecoin-native applications. In terms of cross-border payments and remittance, Arc provides a transformative foundation for international payments. Through fiat-backed stablecoins and instant, low-cost settlement, businesses can streamline global capital flows. Regarding stablecoin foreign exchange perpetual contracts, builders can create a fully stablecoin-centric perpetual futures market, allowing traders to leverage long and short positions in the global currency market.

On-chain credit and off-chain trust, Arc makes it possible to build credible credit infrastructure on-chain. Builders can design lending protocols that integrate identity, cash flow history, and reputation systems. In terms of capital market settlement and tokenized collateral, Arc can enable instant delivery and payment (DvP) for a variety of tokenized financial instruments, from securities and government bonds to commodities and structured products. Regarding agency business and programmatic payments, developers can establish agency systems that embed logic and verifiable identity directly into on-chain payment workflows.

Arc will enter a private testnet in the coming weeks. The public testnet is expected to launch in the fall of 2025, with the mainnet test version set to release in 2026. As an EVM-compatible public network, developers can freely deploy smart contracts using familiar tools (Solidity, Foundry, Hardhat). Although participation of validators requires permission due to security and compliance considerations, access to Arc is completely open.

Arc is not just a blockchain for USDC; it aims to be a home for various forms of digital currencies and tokenized value. From emerging stable exchange protocols to tokenized stocks, commodities, and real estate, Arc provides a robust environment for various stablecoin issuers and builders. Arc is a combination of trusted digital currency and enterprise-grade on-chain infrastructure.