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What is Arc? Circle's USDC-native blockchain explained

By the arky team · Updated · Sources linked inline

Arc is a layer-1 blockchain built by Circle where USDC, not ETH, is the native gas token. It is EVM-compatible, reaches deterministic finality in under one second and launched on mainnet on 16 September 2026. You can trade memecoins, prediction markets and spot tokens on Arc in USDC with arky, the trading terminal of Arc.

Arc in one paragraph

Arc is Circle's public blockchain for "onchain finance with stablecoins". It is an open, EVM-compatible layer 1: anyone can deploy contracts and use it, while blocks are produced by a permissioned set of validators chosen for the launch. Its defining choice is that USDC is the gas token, so every fee is a dollar amount. Circle describes Arc as "an internet-native operating system for economic activity" (arc.io).

Who built Arc?

Arc is built by Circle, the company that issues USDC and EURC. The founding validator cohort shown on arc.io includes BlackRock, Visa, Mastercard, Standard Chartered, Galaxy and Circle itself.

How Arc works

Arc technical design
FeatureWhat it meansSource
USDC as gasFees are paid in USDC. Natively USDC has 18 decimals for gas; the USDC ERC-20 at 0x3600…0000 exposes the usual 6 decimals.Arc docs: contract addresses
Stable feesA Fee Manager smooths the base fee (EWMA) so costs stay predictable in dollars. Wallets must set at least 20 gwei maxFeePerGas.Arc docs: system overview
Sub-second finalityMalachite consensus (Tendermint BFT) needs more than two thirds of validators to agree; once a block is final it cannot be reorganised.Arc docs: system overview
EVM executionReth, a Rust Ethereum client, executes transactions. Arc targets the Osaka EVM baseline, so most contracts deploy unchanged.Arc docs: system overview
Native cross-chain USDCCircle's CCTP (Arc is CCTP domain 26) and Gateway move USDC between Arc and other chains by burn-and-mint.Arc docs: CCTP bridging
Planned extensionsAn opt-in privacy sector and multi-stablecoin services are on the roadmap, not live.Arc docs: system overview

Arc vs Ethereum

For a user, three differences matter. First, you hold USDC for gas, not ETH, so a wallet with only USDC can transact. Second, a transaction is final the moment it is in a block, rather than after many confirmations, which is why deposits and trades on Arc settle so quickly. Third, the validator set is permissioned today, whereas Ethereum validators are permissionless. Circle's CEO has said a future token could move Arc toward proof of stake over time (Decrypt, 14 Apr 2026).

Arc mainnet launch

Arc's public testnet opened in October 2025. Mainnet launched on 16 September 2026, with Circle announcing more than 100 applications ready on day one (Circle press release, 16 Sept 2026). The first day was dominated by trading: Arc recorded $410.8 million of DEX volume, and memecoin launchpads drove about 82% of that volume (Cryptopolitan). Uniswap, Aave and Morpho were deployed at launch, according to the same report. Read our take in Arc mainnet is live.

Is there an Arc token?

Gas on Arc is paid in USDC, and you do not need any other coin to use the chain. Circle has published a whitepaper for an ARC token and minted a genesis supply, but has said this is not a commitment to publicly launch or distribute it (Stablecoin Insider). As of 4 October 2026 there is no official ARC airdrop. Ignore sites that ask you to "claim" ARC by connecting a wallet.

What can you do on Arc?

Where arky fits

arky is the trading terminal of Arc: an Axiom-style app, live on Arc mainnet, that puts the trading terminal, memecoin launchpad and USDC prediction markets and spot trading on one screen, all in USDC. Every user gets Scout, an AI agent that answers from live arky data, proposes trades and can draft memecoin launches. Your wallet signs every trade, and fills are checked on chain. Start at app.arky.bet after you add Arc to your wallet.

FAQ

What is Arc blockchain by Circle?

Arc is an open, EVM-compatible layer-1 blockchain built by Circle. USDC is its native gas token, fees are dollar-denominated and blocks reach deterministic finality in under one second.

When did Arc mainnet launch?

Arc mainnet launched on 16 September 2026, after a public testnet that opened in October 2025.

Is Arc a layer 1 or a layer 2?

Arc is a layer 1. It runs its own consensus (Malachite, a Tendermint BFT engine) and its own execution layer (Reth), rather than settling to Ethereum.

Do I need ETH to use Arc?

No. Arc uses USDC as its native gas token, so a wallet holding only USDC can pay fees and transact.

Is there an Arc airdrop?

As of October 2026 there is no official ARC token airdrop. Circle has published ARC token plans but said they are not a commitment to distribute it, so treat airdrop claims as likely scams.

What can I trade on Arc?

Memecoins, prediction markets and spot tokens, all in USDC. arky, the trading terminal of Arc, brings them together at app.arky.bet with Scout, an AI trading agent.