Arc is a purpose-built, EVM-compatible Layer-1 blockchain advancing the frontier of stablecoin finance and tokenization. It features USDC as native gas, deterministic settlement finality, opt-in privacy, and a stable transaction fee architecture. Optimized for stablecoin-native use cases, such as global payments, FX, and capital markets, Arc serves as a foundational settlement layer for programmable money on the internet.
| General | |
|---|---|
| Company | Circle Internet Group |
| Website | Arc Network |
| Documentation | https://www.arc.network/litepaper |
| Type | Layer-1 Blockchain |
| Launch | Public Testnet Fall 2025, Mainnet Beta 2026 |
| Consensus | Malachite (Byzantine Fault Tolerant) |
| Compatibility | EVM-Compatible |
Core Architecture
Malachite Consensus Engine
- High-performance Byzantine Fault Tolerant (BFT) consensus
- Built on Tendermint algorithm with Rust implementation
- Sub-second deterministic finality (under 350ms with 20 validators)
- Performance up to 10,000 TPS with 4 validators
- No probabilistic confirmations or chain reorganizations
USDC as Native Gas Token
- Transaction fees paid directly in USDC stablecoin
- Predictable, dollar-denominated costs for enterprises
- Eliminates volatile crypto token exposure for gas payments
- Enhanced EIP-1559 fee mechanism with weighted moving averages
- Stable transaction fee architecture optimized for business use
EVM Compatibility
- Full Ethereum Virtual Machine compatibility
- Seamless migration of existing Ethereum applications
- Support for existing developer tools and frameworks
- Native integration with Solidity smart contracts
Key Features
Deterministic Settlement Finality
- Transactions achieve irreversible finality in under 1 second
- No risk of chain reorganizations or reversals
- Guaranteed final settlement for enterprise applications
- Superior to probabilistic finality models
Built-in FX Engine
- Institutional-grade Request-for-Quote (RFQ) system
- 24/7 on-chain foreign exchange and settlement
- Payment-versus-Payment (PvP) atomic swaps
- Support for multiple stablecoin pairs (USDC, EURC, etc.)
- Perpetual futures markets for stablecoin trading
Opt-in Privacy Controls
- Confidential transfers hiding transaction amounts
- Addresses remain visible for compliance
- View keys for selective disclosure to regulators/auditors
- Trusted Execution Environment (TEE) implementation
- Future support for MPC, FHE, and Zero-Knowledge proofs
MEV Mitigation
- Classification of constructive vs. harmful MEV
- Encrypted mempools to prevent front-running
- Batch transaction processing
- Multi-proposer mechanisms for fair ordering
- Protection against sandwich attacks and value extraction
Enterprise Integration
Circle Platform Integration
- Native support for Circle Payments Network (CPN)
- Full integration with USDC, EURC, and USYC tokens
- Circle Mint, Wallets, and Contracts compatibility
- Cross-Chain Transfer Protocol (CCTP) support
- Gateway interoperability service integration
Real-World Asset Tokenization
- Support for tokenized equities, bonds, and securities
- Private credit and institutional fund tokenization
- Partnership with licensed asset issuers and custodians
- Regulated real-world asset (RWA) framework
- Compliance-ready tokenization infrastructure
Institutional Validator Network
- Permissioned Proof-of-Authority consensus initially
- Hand-selected institutional validators
- Geographic distribution of validator nodes
- High compliance and regulatory standards
- Future transition to broader validator participation
Use Cases
Global Payments & Remittances
- Cross-border payments with instant settlement
- Reduced intermediary costs and complexity
- 24/7 operation independent of banking hours
- Multi-currency stablecoin support
Capital Markets & Trading
- Institutional trading settlement
- Tokenized securities and derivatives
- Automated delivery-versus-payment (DvP)
- Real-time collateral management
Foreign Exchange
- On-chain FX trading and settlement
- Stablecoin pair perpetual futures
- Institutional-grade price discovery
- Automated currency conversion
Treasury Management
- AI-powered treasury optimization
- Yield-bearing stablecoin integration (USYC)
- Programmable finance workflows
- Automated compliance reporting
Technical Specifications
- Throughput: 3,000-10,000 TPS depending on validator count
- Finality: Sub-second (100-350ms) deterministic settlement
- Consensus: Malachite BFT based on Tendermint
- Virtual Machine: Ethereum Virtual Machine (EVM) compatible
- Gas Token: USDC native gas payments
- Privacy: Opt-in confidential transfers with compliance features
- Interoperability: Cross-chain bridges and CCTP integration
Development Timeline
- Private Testnet: August 2025 (launched)
- Public Testnet: Fall 2025
- Mainnet Beta: 2026
- Full Production: TBD with community and regulatory readiness
Arc represents Circle's vision for a stablecoin-native financial infrastructure that bridges traditional finance with programmable blockchain technology, designed specifically for enterprise adoption and regulatory compliance.