Circle Eyes Native Token for Arc as Q3 Profits Surge

• Circle may introduce a native token for Arc’s L1 testnet.
• The Arc network was initially designed to use USDC for gas.
• Q3 financials show significant profit growth for Circle.

Circle, the issuer of USDC, is exploring the idea of launching a native token for its Arc Layer 1 testnet, marking a major shift in its enterprise blockchain strategy. Arc is a Layer 1 Ethereum-compatible network (EVM) built for enterprise use cases. When it launched, Circle designed Arc to use USDC as the default gas token, keeping transactions stable and transparent for enterprise clients.

However, Circle’s latest update suggests a pivot towards distributed governance, which would require a native token for voting and incentivization mechanisms. This aligns with broader trends in the blockchain space where decentralization is increasingly becoming a central goal—even for enterprise-focused platforms.

From USDC to Decentralized Governance

Initially, using USDC as gas was a strategic decision. As a stablecoin, USDC offered predictability in transaction fees—essential for enterprises that demand financial clarity. But with rising interest in governance models and community-driven development, Circle appears ready to evolve.

A native token could give users and stakeholders the ability to participate in protocol decisions, steering the direction of Arc’s growth. This would put Arc more in line with other Layer 1 blockchains that rely on community consensus and token-based voting.

Q3 Profits Provide Financial Backing

This announcement coincides with strong Q3 profit growth for Circle, suggesting the company has the financial cushion to support new initiatives like native token development and expanded governance models. Though detailed numbers haven’t been disclosed, the profit increase signals growing adoption and healthy business operations.

These profits may also fund future incentives for developers and validators on the Arc network once the native token is live.