Arc｜Circle's Stablecoin L1 Where USDC Is the Gas Token

Arc is a stablecoin-focused, EVM-compatible Layer-1 blockchain developed by Circle. Designed to use USDC for gas fees, it achieves sub-second finality and a predictable fee structure tailored for institutional investors. This article explains the features of Arc, how to participate in the testnet, the ARC token issuance plan, and the outlook for a potential airdrop.

👉 Visit the Arc Official Website Here

Arc is an institutional-grade L1 blockchain that integrates Circle’s existing tech stack—including USDC, EURC, and CCTP (Cross-Chain Transfer Protocol)—at the protocol level. By utilizing USDC as its gas token (with plans to adopt EURC as well), it enables on-chain settlements at a predictable cost denominated in USD.

Featuring sub-second finality, opt-in privacy, and a design optimized as a multi-chain liquidity hub, more than 100 institutions, including BlackRock, Visa, and HSBC, are already participating in its public testnet. With plans to launch the mainnet in 2026 under a Proof-of-Authority (PoA) model, followed by a gradual transition to PoS and the issuance of the ARC token, Arc is drawing significant attention as a next-generation L1 aiming to become global financial infrastructure.

• USDC Native Gas Token: A unique architecture where gas fees are paid in USDC. This ensures predictable fees denominated in USD, aligning perfectly with enterprise accounting needs. EURC support is also planned.
• Sub-Second Finality: Powered by its proprietary consensus engine, Malachite, settlements achieve finality in under a second. This high performance satisfies the demands of cross-border payments and instant inter-institutional settlements.
• Native Integration of Circle Stack: Core Circle products such as USDC, CCTP, and Gateway are built-in at the protocol level to maximize stablecoin payment efficiency.
• Opt-In Privacy: A hybrid design that allows selective confidentiality for transaction details while maintaining the transparency required for regulatory compliance, catering explicitly to institutional use cases.
• EVM Compatibility: Built on the same smart contract foundation as Ethereum, allowing seamless access via existing wallets like MetaMask and standard development toolchains.

The ARC token whitepaper was released on May 11, 2026, alongside a closed presale totaling $222M (at a $3B FDV, equivalent to 740M ARC). The public TGE (Token Generation Event) is expected to take place after the mainnet launch.

Arc is not a typical L1 chain that simply boasts "high speed and low fees." Its biggest differentiator is that it uses USDC as native gas, aiming to provide an on-chain environment where corporations and financial institutions can easily manage costs in USD terms.

The three most noteworthy points are:

• USDC-Denominated Gas Fees: Instead of highly volatile native tokens like ETH or SOL, transaction fees are paid in USDC, making it highly compatible with corporate accounting and payment services.
• Seamless Circle Integration: The architecture makes it effortless to leverage Circle’s existing infrastructure, such as USDC, CCTP, and Gateway.
• Institutional & Enterprise-Grade Design: Sub-second finality, opt-in privacy, and a network structure designed with compliance in mind.

However, keep in mind that Arc is still in its public testnet phase. The official launch of the mainnet, the ARC token, the PoS transition, and incentive designs for retail users are pending future official announcements.

👉 Register for the Arc Community

Arc has opened its public testnet, allowing developers and users to connect their wallets, deploy contracts, and test transactions.

First, add the Arc Testnet to your wallet using the following parameters:

The participation steps are as follows:

1. Prepare an EVM-compatible wallet such as MetaMask, Rabby, Coinbase Wallet, or Rainbow.
2. Add the Arc Testnet to your wallet.
3. Claim testnet USDC from the Circle Faucet.
4. Try transferring funds or interacting with smart contracts on the Arc Testnet.
5. For developers, deploy contracts using tools like Foundry, Remix, or Hardhat.
6. Verify your transactions on the Arc Testnet Explorer.

For developers, official documentation outlines contract deployment steps using Foundry. Because Arc is EVM-compatible, you can use existing Ethereum development tools out of the box.

The ARC token whitepaper was released on May 11, 2026, along with reports of a completed $222M presale. The presale valued the network at a $3B FDV, led by a16z crypto ($75M), with participation from BlackRock, Apollo Funds, ICE, SBI Group, and ARK Invest.

However, retail users must exercise extreme caution regarding the following points:

• The ARC token is NOT yet publicly circulating.
• No official airdrop has been announced.
• The TGE timeline has not been officially finalized.
• Existing "ARC" tokens on exchanges or DEXs may belong to entirely different projects.
• Arc Official does not guarantee the launch timeline, functionality, exchange listings, or liquidity of the ARC token.

• Circle: Parent company and issuer of USDC/EURC. Leading the protocol design of Arc and the integration of the Circle stack.
• a16z crypto: Lead investor in the presale ($75M), one of the largest VCs in the Web3 space.
• BlackRock: Investor and testnet participating institution; the world’s largest asset manager.
• Apollo Funds / ICE / SBI Group: Investors; major global entities across private credit, exchanges, and financial conglomerates.
• Visa / HSBC: Testnet participating institutions exploring real-world applications in payments and banking.

• Official Website: https://www.arc.network/
• X (formerly Twitter): https://x.com/arc
• Discord: https://discord.com/invite/buildonarc
• Documentation: https://docs.arc.network/
• Testnet Explorer: https://testnet.arcscan.app/
• Circle Faucet: https://faucet.circle.com/
• Parent Company (Circle): https://www.circle.com/

• Arc is a USDC-native, institutional-grade L1 developed by Circle, characterized by sub-second finality and USD-denominated gas fees.
• In May 2026, a $222M presale (at a $3B FDV) was supported by a16z crypto, BlackRock, and others, alongside the release of the ARC whitepaper.
• Public TGE and airdrop plans for the ARC token remain unconfirmed. Beware of fake tokens and scam airdrops.
• The Arc Testnet allows testing of USDC gas, contract deployments, and integration with CCTP and Gateway.
• Moving forward, the main net launch schedule, PoS transition, validator structure, live applications, and the expansion of USDC liquidity will be critical milestones to watch.

👉 Check details on the Arc Official Website