Circle Arc to Launch Public Mainnet Using USDC for Gas Fees

Circle ($CRCL) will transition its self-developed Layer-1 network Arc to a public mainnet on August 16, utilizing USDC as the native gas asset. The platform aims to reduce payment costs and timing issues associated with fragmented USDC across multiple blockchains while enabling institutions to handle payments, foreign exchange, and tokenized asset settlements within a single network.

Circle announced in an August 5 statement that Arc is preparing for public mainnet launch, designed to use USDC as the native gas asset and finalize transactions at sub-second speeds. Unlike traditional systems requiring users to hold separate cryptocurrencies like Ethereum (ETH) or Solana (SOL) for fees, Arc allows payments using a dollar-pegged asset.

Targeting enterprise payment processing and capital management rather than general user volume, Circle highlighted key use cases including payments, foreign exchange, lending, and capital markets. The core feature is 'deterministic finality,' which eliminates the need to wait for additional blocks after transaction inclusion, allowing institutions to manage settlement timelines more effectively.

Technically, Arc operates on a Malachite consensus engine with EVM compatibility, supporting Solidity-based tools and smart contracts. Circle also confirmed support for optional privacy features, Circle Payments Network, CCTP, and Gateway integrations to connect USDC movement and payment flows across networks within its infrastructure.

The founding validator group reflects Arc's institutional focus, including BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. However, the initial validator set is limited, with Circle planning to expand participation and establish transparent governance over time.

BlackRock's dollar-denominated institutional digital liquidity fund BUIDL is expected to deploy on Arc, though Circle described this as an 'expected' phase rather than a confirmed launch. DTCC collaboration is scheduled for second half of 2027, with plans to tokenize DTC-held assets on Arc and enable third-party applications supporting stablecoin-based payments. The exact service timeline and asset scope remain unspecified.

Circle also noted planned support for cirBTC on Arc in a preliminary stage.