Circle’s New Blockchain, Arc, Could Shift Stablecoin Flows from Ethereum

Circle has launched Arc, an EVM-compatible Layer-1 blockchain designed for stablecoin finance. The platform utilizes USDC as its native gas token and aims to offer fast, reliable payments, foreign exchange (FX), and capital market services, potentially diverting stablecoin flows away from Ethereum. Arc’s emphasis on enterprise-grade features like sub-second finality and built-in FX could attract clients looking for compliant and secure transactions. This move marks a significant shift in Circle’s strategy from being a ‘issuer on other people’s rails’ to becoming a platform with its own infrastructure.