Circle Launches Arc, a USDC-Powered Layer 1 Blockchain

• Circle announces Arc, built for USDC as its native currency.
• Public testnet runs from September to November 2025.
• Designed to power faster, cheaper stablecoin transactions.

Circle, the company behind the popular USD Coin (USDC), has revealed its newest project — Arc, a USDC Layer 1 blockchain. Unlike other networks where stablecoins operate as one of many assets, Arc will have USDC at its core. This means every transaction, contract, and application on Arc will use USDC as the primary medium of exchange.

The move positions Circle not just as a stablecoin issuer but also as a direct player in blockchain infrastructure, potentially reshaping how stablecoin ecosystems operate.

Public Testnet Coming in Late 2025

Circle plans to launch Arc’s public testnet between September and November 2025. This phase will allow developers to experiment with the network’s capabilities, test smart contracts, and build decentralized applications optimized for USDC transactions.

Arc’s architecture is expected to prioritize speed, low fees, and global accessibility, aiming to make USDC the most efficient settlement currency for both retail and institutional use cases.

Why Arc Matters for the Crypto Space

By creating a dedicated USDC Layer 1 blockchain, Circle could reduce reliance on third-party chains like Ethereum or Solana for stablecoin transfers. This could result in more predictable transaction costs, higher throughput, and greater stability for developers building payment-focused apps.

If successful, Arc could become the go-to blockchain for merchants, fintechs, and DeFi platforms seeking a stable and reliable settlement layer.

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