Circle launches Arc mainnet with USDC as native gas token
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Cointelegraph by Helen Partz
Circle has launched its Arc mainnet, an L1 blockchain designed for stablecoin payments and agentic transactions. The network uses USDC as its native gas token, features EVM compatibility, and supports over 20 fiat stablecoins and various tokenized assets.
The Evolution of Stablecoin Infrastructure: Circle Launches Arc
Circle, the issuer of the prominent stablecoin USDC, has officially launched the mainnet for Arc, a specialized layer-1 (L1) blockchain. This development marks a significant shift in the digital asset ecosystem, moving away from general-purpose networks toward infrastructure specifically engineered for stablecoin payments and financial markets. By prioritizing agentic transactions—automated financial interactions performed by AI or software agents—Circle is positioning itself at the intersection of fintech and the emerging autonomous economy.
Architectural Foundation and Native USDC Integration
A defining feature of the Arc mainnet is its unique economic design, which utilizes USDC as its native gas asset. By removing the need for auxiliary tokens to pay for transaction fees, Circle simplifies the user experience for institutions and developers. Furthermore, the network is built with Ethereum Virtual Machine (EVM) compatibility, ensuring that existing dApps and smart contracts can be ported over with minimal friction. This technical choice is critical for maintaining developer adoption while leveraging the robust ecosystem of tools already prevalent in the broader blockchain industry.
Deterministic Performance and Settlement
In financial markets, transaction speed and finality are non-negotiable. Arc addresses these requirements by offering deterministic sub-second settlement finality. This performance capability is essential for high-frequency financial operations and complex settlement procedures that cannot tolerate the latency associated with traditional proof-of-work or slower proof-of-stake consensus mechanisms. By achieving this speed, Circle is attempting to bridge the gap between traditional banking infrastructure and the instantaneous nature of decentralized ledgers.
Ecosystem Diversity and Tokenized Assets
Beyond basic payment functionality, the Arc mainnet serves as a hub for a diverse array of fiat-backed assets. With support for over 20 fiat stablecoins—including EURC, JPYC, KRW1, and TRYB—the network is designed to facilitate global liquidity across various currencies. Additionally, the native availability of tokenized assets like BlackRock’s BUIDL and Circle’s USYC signals a strategic move to capture the growing trend of Real World Asset (RWA) tokenization, allowing institutional investors to interact with traditional financial products directly on-chain.
Interoperability and Future Trends
The launch of Arc is not an attempt to create a siloed ecosystem; rather, it is designed to be highly interoperable. Through Circle’s Cross-Chain Transfer Protocol (CCTP), the network links to over 20 other blockchains, enabling seamless asset movement. This focus on interoperability suggests that Circle views the future of finance as a multi-chain environment where the underlying blockchain acts as the settlement layer, while the value resides in the liquidity and stability of the assets themselves. As agentic transactions continue to grow, Arc is well-positioned to become the backbone for automated, cross-border financial settlements.