What is Arc? Learn about the stablechain developed by Circle.

In the context of stablecoins and Tokenize assets playing an increasingly central Vai in on-chain finance, Arc emerges as a Layer 1 blockchain specifically designed for institutional-level economic activities. So what makes Arc special? Let's explore this blockchain development project by Circle in the article below!

What is Arc? Learn about the stablechain developed by Circle.

What is an arc?

Arc is a layer-1 blockchain developed by Circle to directly support USDC . Arc is specifically designed for stablecoin payments and financial applications, offering advantages such as under-1-second transaction times, low fees, integration with forex (FX) tools, and privacy options.

Arc's homepage

On Arc, USDC will become the primary currency, helping Circle reduce its dependence on Ethereum or TRON and making USDC the central component of its cross-border payment infrastructure.

The unique feature of Arc

What makes Arc unique is that the project is designed as an "Economic Operating System for the Internet," focusing directly on accelerating economic growth by combining the advantages of blockchain with the mandatory standards of traditional finance.

Arc utilizes stablecoins as its primary Gas Price , resulting in low, stable, and predictable transaction costs; provides instant, last-resort payment capabilities to meet enterprise-level payment requirements; integrates configurable privacy features to protect sensitive data while maintaining auditability; and Vai as a central hub for aggregating and connecting stablecoin liquidation and Tokenize assets in a multi- chain environment. Overall, Arc aims to become an enterprise-grade blockchain infrastructure directly serving large-scale economic activities on the internet.

Arc's features

Arc's ecosystem

- Open L1 blockchain : Designed to directly support real-world and on-chain economic activities.

- Economic Velocity-oriented design : Combining the efficiency of blockchain with the core elements of traditional finance.

- Stablecoins as the primary Gas Price : Low Gas Price , easy to predict, pegged to fiat currency, initially using USDC.

- Deterministic Sub-second Finality : Determines the final payment in under one second, suitable for enterprise-level use cases.

- High-performance BFT Consensus (Malachite) : Uses Malachite to ensure the performance, reliability, and certainty of transactions.

- Auditability-preserving Privacy : Allows for the shielding of sensitive financial data while maintaining auditability.

- Global Liquidity Hub : A hub for stablecoins and Tokenize assets within a multi- chain ecosystem.

- Composable Liquidity via CCTP & Gateway : Liquidation can be flexibly connected and utilized through CCTP and Gateway.

- Supporting core financial services : Including on-chain lending, Capital markets, foreign exchange, and payments.

- Enterprise-grade Network Infrastructure : Built to meet the high demands for performance, stability, and liquidation of the global internet economy.

Details about the project's Token .

Arc doesn't build its ecosystem around a single project Token in the form of a speculative Utility Token Token or Governance Token . Instead, Arc chooses a different approach, placing stablecoins and Tokenize assets at the heart of its entire economic architecture.

Specifically, USDC Vai as the gas gas asset on the Arc network, used to pay all transaction fees. This model aims to eliminate price volatility, reduce accounting complexity, and stabilize and predict operating costs in fiat currency, making it suitable for enterprise and financial institution use cases. In addition to USDC, Arc also plans to support other stablecoins, Tokenize fiat currencies, and a paymaster mechanism to expand Gas Price payment capabilities.

Project development roadmap

- Public Testnet (Fall 2025) : Launch of a public testnet for developers and partners.

- Mainnet Beta Launch : Deploying core features such as stable Gas Price using USDC, deterministic sub-second finality with Malachite, and integration with the Circle ecosystem.

- Privacy Enhancements : Adding confidential transfers, moving towards fully programmable privacy for complex financial applications.

- MEV Mitigation : Applying MEV mitigation techniques such as encrypted mempools, batch transaction processing, and multi -proposer.

- Security & Performance Upgrades : A roadmap for transitioning to permissioned Proof-of- Stake and optimizing the Malachite consensus engine to improve network performance and security.

The Arc project development team

The development and design team includes Gordon Y. Liao, Rachel Mayer, Adrian Soghoian, Sanket Jain, and Erik Tierney, all individuals closely associated with Circle. Circle Internet Group plays a leading organizational Vai in the project, leveraging its experience operating USDC, building financial primitives across multiple blockchains, and working closely with financial institutions and regulators.

Investors in the Arc project

Currently, Arc has not announced any Capital rounds or a list of independent investors for the project. Instead, Arc is directly led and developed by Circle Internet Group, which Vai as the main sponsor providing resources, technology, and strategic direction. There is currently no confirmed information regarding the involvement of Venture Capital or investors outside of Circle in the Arc project.

Summary

Above is all the information about the Arc project, as well as how the developing trends of stablecoin projects will affect the market.

Note: The information in this article should not be XEM investment advice, and Coin68 is not responsible for any decisions you make.