Circle debuts Arc blockchain which Jeremy Allaire calls ‘more consequential’ than USDC
The USDC issuer’s chain is built for payments, tokenized assets and institutional finance as banks and payment giants pile into the stablecoin market.
- Circle launched Arc, a blockchain designed as an “economic operating system” for payments, tokenized markets, lending and trading as competition in the stablecoin industry intensifies.
- Arc debuted with more than 100 institutions and ecosystem companies participating or exploring the network, including BlackRock, Mastercard, Visa, BNY and HSBC.
- The network charges fees in USDC and currently uses permissioned validators, while Circle is considering a shift to proof of stake that could give its newly minted ARC token a role beginning in 2027.
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Competition is heating up to among the largest blockchain companies to provide the rails for moving money and financial assets onchain.
“This is, I believe, the most consequential major platform launch in our history, and I think an even more consequential launch than USDC itself,” said Circle CEO Jeremy Allaire during a press briefing.
The stablecoin market, Circle’s main business, is becoming increasingly competitive, with banks and payment firms entering the race.
A group of 21 financial institutions including Bank of America, Citi and Goldman Sachs is preparing a dollar stablecoin for the first half of 2027, while European bank consortium Qivalis is working toward a euro token. Meanwhile, payments giant Stripe pushes deeper into crypto with Open Standard’s upcoming Open USD stablecoin and Tempo, the payments-focused blockchain it incubated with Paradigm.
Circle aims to compete beyond the stablecoin itself with Arc. Allaire described the chain as a general-purpose “economic operating system” for payments, tokenized financial markets, lending, trading and, eventually, commerce between AI agents.
Wall Street joins Arc
Circle’s Arc kicks off with a wide roster of heavyweight institutions that stretches well beyond crypto-native firms.
