Circle is building its own Layer-1 blockchain. And it’s not just any chain, USDC will be the gas.
The U.S.-listed company, known for issuing the USDC stablecoin, revealed the plan in its Q2 2025 earnings report today. The blockchain, called Arc, is designed for enterprise-grade stablecoin payments, capital markets, and foreign exchange (FX) transactions.
Arc will be EVM-compatible, making it familiar to Ethereum developers while tuned for high-speed, institutional needs. Circle says it will integrate the new chain across all its products and make it interoperable with other blockchains it already supports.
Circle to Launch EVM-Compatible Blockchain With #USDC as Gas Token.
U.S.-publicly-listed company and issuer of USDC stablecoin, Circle, has announced plans to launch a new Layer-1 blockchain later this year.
Circle introduced the blockchain, called Arc, in its Q2 2025 earnings… pic.twitter.com/NetKhB8kmc
— TheCryptoBasic (@thecryptobasic) August 12, 2025
Public testnet? This fall. Mainnet? No date yet.
USDC at the Core
Here’s the twist, USDC isn’t just a payment option; it’s the official gas token. Every transaction fee on Arc will be paid in USDC. That means users won’t need to juggle multiple tokens for stablecoin settlements.
As of today, USDC holds a $32.7B market cap and trades at exactly $1.00, per CoinMarketCap. It remains the second-largest stablecoin after USDT.
Arc won’t just be about fees. Circle says it’s packing in:
- Sub-second finality, faster confirmations than most L1 chains.
- Built-in FX engine, converting stablecoins across currencies on-chain.
- Opt-in privacy controls, for enterprises that need confidentiality.
With these features, Arc aims to be the go-to for regulated, high-volume stablecoin transactions.
Market Position For Circle
Circle is moving in a competitive landscape. Solana, Avalanche, and Ethereum L2s are already targeting payments and FX flows. But by building its own chain with USDC at the center, Circle gains more control, and a direct way to capture transaction revenue.
USDC’s market dominance has slipped in recent years, falling from a $55B peak in 2022. Arc could be Circle’s push to reverse that trend by making USDC the default settlement token on its own rails.
The company stressed that Arc won’t be a closed ecosystem. It will connect with blockchains where USDC already circulates, including Ethereum, Solana, and Base. That could make moving funds across networks faster and cheaper for businesses.
What’s Next
September 2025 marks the public testnet launch. Developers will be able to deploy and test stablecoin applications, run FX swaps, and experiment with the privacy settings. The mainnet will follow “at a later date,” Circle said.
If Arc delivers on speed, interoperability, and seamless USDC payments, it could carve out a niche in the stablecoin settlement market, one where gas fees are predictable and always dollar-denominated.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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