Why Arc Might Change the Way We Use Stablecoins

Circle, the company known for USDC, has introduced a new blockchain called Arc. This isn't just another blockchain like Ethereum or Solana. Arc is built specifically for stablecoins, aiming to make them more useful for big companies. Stablecoins are digital currencies tied to real-world money, like the dollar. Circle noticed that current blockchains have issues with stablecoins. Problems like unpredictable fees, uncertain transactions, and lack of privacy make it hard for big companies to use them. Arc wants to fix these problems. It offers quick, irreversible transactions, stable fees, and privacy options that follow rules. Plus, it connects easily with other blockchains and traditional finance systems. Arc is being rolled out in stages. First, a private testnet started in August 2025. Next, a public testnet is expected in Fall 2025. Finally, the mainnet beta is scheduled for 2026. One big feature of Arc is using USDC as the native gas. This means no more dealing with volatile tokens for transaction fees. The fee model is designed to keep costs low and predictable. Arc's consensus layer is powered by Malachite, a system that ensures security and fairness. It's currently permissioned, but plans include a move to a more open Proof-of-Stake mechanism. Privacy is a big focus on Arc. It offers optional privacy features that balance compliance with confidentiality. Institutions can choose to disclose data to regulators or auditors when needed. Circle also provides tools to connect fiat and USDC across Arc and other blockchains. This makes it easier for users to move money around. Arc is entering a competitive market. But Circle's strong position with USDC gives it an edge. Arc aims to extend the utility of stablecoins beyond payments into real-time settlement, tokenization, and global capital.