Circle's Arc Blockchain Sees Rapid Adoption with $649M in Initial USDC Deployments
Circle's Arc blockchain, which went live on September 16, has made significant strides in its initial week by deploying $649 million in USDC and $7 million in EURC. This rapid adoption highlights Arc's potential as a financial market-focused EVM-compatible blockchain.
Key Features of Arc
Arc boasts sub-second transaction finality and aims for transaction fees around $0.01. Notably, USDC serves as the native gas and settlement asset, allowing every transaction to utilize Circle's stablecoin rather than a volatile native token.
Institutional Backing
The launch was supported by over 100 participants, including major players like BlackRock, Visa, and Mastercard. Additionally, Arc has integrated with DeFi protocols such as Aave, Morpho, and Uniswap from day one.
ARC Token Valuation
During its genesis event, Circle minted 10 billion ARC tokens, distributing them across an ecosystem development fund (60%), Circle itself (25%), and long-term reserves (15%). A presale valued the ARC token supply at $3 billion.
Future Developments
Circle plans to transition Arc to a proof-of-stake consensus mechanism by 2027, where ARC tokens will play a crucial role in network validation. Until then, USDC will continue to facilitate transactions.
Broader Implications
As of September 14, the total circulating supply of USDC was approximately $74.22 billion. Arc's infrastructure supports the Cross-Chain Transfer Protocol, enabling USDC movement across more than 30 networks and positioning it as a multi-currency settlement layer.
Updated 11:00 UTC
New Developments in Brazil's Stablecoin Regulation
- Brazil's central bank will prohibit stablecoins from settling a specific type of international payment flow starting October 1, 2023.
- Resolution 561 mandates that the settlement leg between foreign-exchange providers and overseas counterparties must go through licensed FX transactions or qualifying non-resident real accounts.
- Individual international transfers using virtual assets remain permitted under Brazil's existing framework.
- Brazil's tax authority recorded R$1.13 trillion in declared stablecoin transactions from August 2019 to December 2025, representing approximately 72% of all declared crypto activity in that period.
- Stablecoins accounted for close to 80% of declared crypto transaction volume in 2025, with USDT making up nearly 89% of that total.
- A July Bank of Italy study found that costs for $200 USDC transfers varied from 0.3% to nearly 9%, with no consistent advantage over traditional payment channels.
- Stablecoins are increasingly used by brokers for treasury management and internal settlements, indicating a shift in infrastructure rather than avoidance of regulations.
FAQ
What is Circle's Arc blockchain?
Circle's Arc blockchain is a financial market-focused EVM-compatible blockchain that went live on September 16, designed to facilitate rapid transactions and support stablecoin usage.
How much USDC has been deployed on the Arc blockchain?
In its initial week, Circle's Arc blockchain deployed $649 million in USDC and $7 million in EURC.
What are the key features of the Arc blockchain?
Arc features sub-second transaction finality, aims for transaction fees around $0.01, and uses USDC as its native gas and settlement asset.
Who are the major participants supporting the launch of Arc?
The launch of Arc was supported by over 100 participants, including major players like BlackRock, Visa, and Mastercard.
What is the future plan for the ARC token and the Arc blockchain?
Circle plans to transition Arc to a proof-of-stake consensus mechanism by 2027, where ARC tokens will be crucial for network validation, while USDC will continue to facilitate transactions until then.
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