Circle Introduces Arc Network with USDC as Native Token

Arc Network Details

Circle has formally ushered in Arc, marking a substantial evolution in blockchain infrastructure. The new Layer 1 network will utilize USDC as its native token, aiming to stabilize transaction costs and streamline digital operations. Over 100 launch partners participated in the network’s design and testing phases.

With participation from major exchanges like Coinbase and Kraken, Arc’s public testnet aims to bring transformative stability to digital asset operations. Circle’s CEO Jeremy Allaire described this launch as a “defining moment” in creating a platform for the financial internet.

The launch of Arc signifies a strategic shift towards stablecoin-centric operations, potentially impacting the broader cryptocurrency ecosystem. Observers expect significant institutional adoption. Arc integrates with Circle’s broader ecosystem, hinting at future flows toward DeFi protocols like Uniswap and Curve.

This development follows a rare precedent where a major stablecoin assumes the role of a native gas token. The closest parallels, such as BNB Chain and Celo, have not matched Arc’s regulatory or mission scope. They emphasize substantial increases in stablecoin liquidity and institutional onboarding.

Arc’s introduction further aligns with recent regulatory advancements under the US GENIUS Act, positioning Circle for strengthened regulatory compliance. Industry leaders remain attentive, evaluating Arc’s potential to enhance merchant funding and support multi-currency transactions.

Anticipated outcomes of Arc’s launch include greater financial stability and technological integration in the crypto space, possibly boosting the adoption of stablecoins. These outcomes could set a new benchmark in blockchain technology through targeted institutional solutions and enterprise adoption.