Blockchain Launch Announced by Circle After $5.9 Trillion USDC Earnings Report in Q2
Circle's Arc blockchain is a new layer-1 blockchain designed specifically for stablecoin finance, aiming to support payments, exchange, capital markets, and enterprise applications. Launched by Circle, the company behind the popular USDC stablecoin, Arc offers a unique set of features that make it an attractive choice for stablecoin-powered financial applications.
One of the key features of Arc is the use of USDC as the native gas token. This means that transaction fees are paid directly in USDC, mitigating volatility in gas costs. Additionally, Arc is compatible with the Ethereum Virtual Machine (EVM), allowing Ethereum developers to use familiar tools when deploying applications on Arc.
Arc offers real-time settlement of enterprise-scale financial processes and features a built-in stablecoin FX engine, enabling real-time atomic settlement between different stablecoins. The blockchain also boasts sub-second transaction finality and optional privacy controls targeted at institutional users.
Arc's primary goal is to remove volatility from transaction costs, enable cross-chain liquidity, and deliver the speed, security, and compliance necessary for enterprise-grade stablecoin-powered financial applications. Its interoperable architecture connects with over 24 existing networks where USDC is supported, preserving the broader ecosystem's integration while providing a high-performance environment tailored for stablecoin usage.
The growth of USDC and the stablecoin economy is significantly contributed to by Arc. By providing a dedicated blockchain infrastructure optimized for stablecoin transactions, enabling predictable, dollar-denominated transaction fees, accelerating institutional and enterprise adoption, boosting USDC's utility and market presence, and strengthening Circle's position as a key infrastructure provider in the evolving digital dollar economy, Arc is poised to play a crucial role in the stablecoin space.
Arc is currently scheduled to go to private testnet in the weeks ahead and to public testnet this fall. It is designed to organize confidential transactions while maintaining compliance, and features a pre-written FX engine for simplified cross-currency stablecoin swaps. Arc is also interoperable with the larger multichain environment.
In essence, Arc is designed to be the financial backbone for stablecoin-powered economies, improving scalability, reducing cost volatility, and fostering next-generation digital asset markets centered on USDC. As the USDC supply continues to grow, Arc is set to play a pivotal role in the future of stablecoin finance.
[1] Circle. (2022). [Arc Whitepaper]. Retrieved from https://circle.com/en/resources/whitepapers/arc-whitepaper
[2] Circle. (2022). [Arc: The Financial Backbone for Stablecoin-Powered Economies]. Retrieved from https://medium.com/circle-blog/arc-the-financial-backbone-for-stablecoin-powered-economies-338c23f4107d
[3] Circle. (2022). [Circle Announces Arc, a New Layer-1 Blockchain for Stablecoin Finance]. Retrieved from https://circle.com/en/press-releases/circle-announces-arc-a-new-layer-1-blockchain-for-stablecoin-finance
[4] Circle. (2022). [Circle Q2 2022 Earnings Report]. Retrieved from https://circle.com/en/resources/earnings-reports/circle-q2-2022-earnings-report
[5] Circle. (2022). [Circle's Arc Blockchain Aims to Become the Financial Backbone for Stablecoin-Powered Economies]. Retrieved from https://www.coindesk.com/business/2022/09/20/circles-arc-blockchain-aims-to-become-the-financial-backbone-for-stablecoin-powered-economies/
- The new Arc blockchain, a creation of Circle that targets stablecoin finance, aims to provide a layer for payments, exchange, capital markets, and enterprise applications.
- One of the main features of this blockchain is the use of USDC as the native gas token, which effectively makes transaction fees dollar-denominated.
- Arc's compatibility with the Ethereum Virtual Machine (EVM) allows Ethereum developers to leverage familiar tools when deploying applications on Arc.
- Arc's built-in architecture supports real-time settlement of enterprise-scale financial processes and offers a stablecoin FX engine for atomic settlement between diverse stablecoins.
- Its sub-second transaction finality and optional privacy controls cater to institutional users, while its interoperable architecture connects with 24+ networks where USDC is supported.
- Arc's role in fostering growth in the USDC and stablecoin economy is significant, as it provides infrastructure optimized for stablecoin transactions, increases USDC's utility, and strengthens Circle's position in the digital dollar economy.
- Arc is scheduled for private testnet in the upcoming weeks and a public testnet this fall, with features including confidential transactions and a pre-written FX engine for simplified cross-currency stablecoin swaps.
- As the USDC supply grows, Arc is poised to become the financial backbone for stablecoin economies, enhancing scalability, reducing cost volatility, and enabling next-generation digital asset markets centered on USDC.
