Circle has announced the launch of a new Layer-1 blockchain called Arc, which is specifically designed for stablecoin transactions. The new blockchain, which will be open-source and have a public testnet available in late 2025, will use USDC as its native gas token.
Arc's focus on EVM compatibility means it will be able to work with existing Ethereum-based tools, opening up new possibilities for developers and potentially creating new liquidity routes. The CEO of Circle, Jeremy Allaire, highlighted Arc’s features like sub-second instant finality and configurable privacy controls, stating that the company aims for Arc to "underpin all stablecoin payments."
This new blockchain has drawn attention for its potential to innovate in the stablecoin space, especially by pioneering new payment advancements and creating new transaction fee revenue streams.
August 2025, Cryptoniteuae