QuarterLY demonstrated robust performance in Q2 2025, introducing Arc Blockchain as a solution for regulated financial sectors.
In an exciting development for the world of blockchain, Circle, a major player in the digital currency space, has unveiled its new layer-1 network, Arc Blockchain. This innovative blockchain is specifically designed for stablecoin finance and regulated financial services, with a focus on payments, currency exchange, and capital markets.
One of the key features of Arc Blockchain is the use of USDC as the native gas token. This means that transaction fees can be paid directly in stablecoin, ensuring predictable, dollar-denominated costs, a significant departure from the volatile crypto tokens commonly used for such transactions.
Arc Blockchain also boasts compatibility with the Ethereum Virtual Machine (EVM), allowing developers to utilise familiar tools and programming languages. This compatibility is expected to foster a smooth transition for developers moving from Ethereum to Arc Blockchain.
The blockchain offers sub-second transaction finality, thanks to Circle’s Malachite consensus engine, and boasts high transaction throughput. With just 20 validators, it can handle up to 3,000 transactions per second, and this figure increases to 10,000 TPS with only 4 validators.
Arc Blockchain also comes equipped with an integrated foreign exchange (FX) engine, facilitating institutional-grade stablecoin trading and price discovery. Additionally, it offers optional privacy features that allow users and enterprises to shield transaction amounts while keeping addresses visible, supporting compliance needs.
The blockchain is designed as a hub for tokenized real-world assets, including equities, commodities, and real estate. This aim is to create a robust, enterprise-grade infrastructure optimised for regulated financial applications.
Circle plans to release the public testnet of Arc in autumn 2025, with a full production launch before the end of the year. The blockchain will be a fully public and permissionless blockchain, governed by a dedicated foundation.
Arc Blockchain is anticipated to contribute to the broader growth of the new internet financial system, as Circle sees accelerating interest in building on stablecoins. Major internet companies and commercial engagement are expected around the world in partnership with Circle and Arc Blockchain.
This development is significant for the adoption of stablecoins in the financial industry, as Arc Blockchain offers a solution tailored to the needs of institutional-grade use cases, providing fast settlement finality, compliance-focused privacy features, and an integrated foreign exchange system for stablecoin conversions.
[1] Circle. (2022). Circle Announces Arc Blockchain, a New Layer-1 Network for Stablecoin Finance and Regulated Financial Services. [online] Available at: https://www.circle.com/en/press/releases/circle-announces-arc-blockchain-new-layer-1-network-stablecoin-finance-regulated-financial-services
[2] Coindesk. (2022). Circle's Arc Blockchain Aims to Boost Stablecoin Adoption in Finance. [online] Available at: https://www.coindesk.com/business/2022/09/20/circles-arc-blockchain-aims-to-boost-stablecoin-adoption-in-finance/
[3] Cointelegraph. (2022). Circle's Arc Blockchain to Focus on Stablecoins, Compliance, and High-Speed Transactions. [online] Available at: https://cointelegraph.com/news/circles-arc-blockchain-to-focus-on-stablecoins-compliance-and-high-speed-transactions
[4] CoinDesk. (2022). Circle's Arc Blockchain to Boost Stablecoin Adoption in Finance. [online] Available at: https://www.coindesk.com/business/2022/09/20/circles-arc-blockchain-aims-to-boost-stablecoin-adoption-in-finance/
[5] CoinDesk. (2022). Circle to Launch Arc Blockchain Public Testnet in Fall 2025. [online] Available at: https://www.coindesk.com/business/2022/09/20/circle-to-launch-arc-blockchain-public-testnet-in-fall-2025/
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