Arc is an open Layer-1 blockchain network built by Circle specifically for stablecoin finance and real-world economic activity. The platform features native USDC as gas, providing predictable dollar-denominated fees that eliminate exposure to volatile crypto assets. Arc delivers sub-second transaction finality through the Malachite consensus engine, optional privacy controls for confidential business operations, and seamless integration with Circle's full platform including USDC, EURC, Cross-Chain Transfer Protocol, Circle Payments Network, and upcoming USYC tokenized fund support. The blockchain is EVM-compatible, allowing developers to use familiar Ethereum tooling and frameworks while accessing enterprise-grade infrastructure optimized for payments, foreign exchange, capital markets, lending, and tokenized assets.

Technology & Features

Arc represents a fundamental departure from general-purpose blockchains by focusing exclusively on stablecoin-native use cases. The platform is powered by the Malachite consensus engine, developed by Informal Systems and now maintained by Circle under open-source licensing. This highly performant Byzantine Fault Tolerant consensus mechanism enables deterministic sub-second settlement finality, eliminating the uncertainty of probabilistic finality found on many other chains.

The blockchain architecture implements USDC as the native gas token, removing treasury departments' need to hold volatile crypto assets for transaction fees. The fee structure uses an EIP-1559-like base fee with exponentially weighted moving average smoothing, providing predictable dollar-based costs that businesses can forecast and budget. Initial testnet fees support USDC with planned expansion to EURC and other stablecoins.

Arc includes a built-in foreign exchange engine designed for institutional requirements. This on-chain Request for Quote system facilitates price discovery and peer-to-peer settlement for stablecoin-to-stablecoin currency pairs, operating continuously without external venues. The infrastructure supports 24/7 global FX operations with cryptographic verification of all transactions.

Privacy capabilities are implemented through opt-in configurable shielding, allowing users and enterprises to selectively protect balance and transaction information while maintaining compliance with regulatory obligations. This enables sensitive payment data and confidential business operations to execute on public rails without exposing proprietary information.

The platform provides native infrastructure for stablecoin and tokenized asset issuance. Regional stablecoin issuers including Forte Securities' AUDF in Australia, Avenia's BRLA in Brazil, JPYC Inc.'s JPYC in Japan, BDACS' KRW1 in Korea, Juno's MXNB in Mexico, Coins.ph's PHPC in the Philippines, and Stablecorp's QCAD in Canada are participating in testnet evaluations. Circle is engaging with additional dollar, euro, and fiat-backed stablecoin issuers for network expansion.

Developer infrastructure includes integrations with Alchemy, Chainlink, Crossmint, Dynamic, LayerZero, Pimlico, Thirdweb, and ZeroDev for comprehensive tooling support. Cross-chain connectivity is enabled through Across, Stargate, and Wormhole protocols. Wallet support spans MetaMask, Fireblocks, Ledger, Rainbow, Turnkey, Exodus, Privy, and Vultisig. Infrastructure providers including Blockdaemon, Blockscout, QuickNode, Ramp Network, Tenderly, Transak, Bridge, Elliptic, and TRM ensure accessibility, performance, compliance, and reliability.