Circle has launched Arc, a layer-1 blockchain (base network) built around USDC, with founding validators including BlackRock, Mastercard, Visa, DTCC and ICE. The network is fully EVM-compatible, allowing existing Solidity contracts to run without modification, while transaction fees are paid in USDC rather than a separate volatile token. Its native ARC token has a fixed supply of 10 billion and is intended for network security, utility and governance. Arc currently uses proof of authority (validator-based network approval), with Circle planning a transition to proof of stake (token-backed validation) in 2027. The chain offers sub-second deterministic finality and an optional privacy feature under development that would allow institutions to shield transaction details through view keys. Circle said Arc's testnet processed more than 700 million transactions in less than a year. More than 100 applications and institutional integrations launched alongside the mainnet, spanning banks, exchanges, DeFi protocols, custody providers and wallets. Arc joins a stablecoin-settlement market that has attracted more than half a billion dollars in dedicated funding, competing with Tether's Plasma and Stripe-backed Tempo. Circle is positioning Arc for institutional capital-markets uses, including StableFX cross-currency settlement, tokenized treasury funds and commerce conducted directly by AI agents.