Circle Launches 'Arc' Mainnet to Target On-Chain Forex Market

Circle, the issuer of the second-largest dollar stablecoin USDC, has officially launched its own layer-1 blockchain 'Arc' public mainnet. The company unveiled plans to position Arc as an on-chain foreign exchange infrastructure, targeting the world's largest financial market with a daily trading volume of $9.6 trillion.

According to Circle, Arc aims to connect stablecoins, tokenized assets, and global financial markets on a single blockchain. Key services include forex infrastructure, cross-chain transfers, and payments. A notable feature is that users can pay transaction fees using USDC or other stablecoins without needing separate network tokens.

Kim Min-seung, head of DigitalX Research Center, noted that unlike Ethereum (ETH) or Solana (SOL), where fees are paid in volatile native assets, Arc's structure addresses institutional concerns about cost predictability for accounting purposes. The platform also offers adjustable privacy features and fast, predictable settlement finality—maintaining public blockchain benefits while accommodating sensitive financial institutions.

Major global financial institutions have joined Arc's early ecosystem, including BlackRock, the U.S. DTCC (Depository Trust & Clearing Corporation), NYSE parent ICE, Mastercard, Visa, Standard Chartered, SBI Group, and South Korea's Upbit. Upbit plans to support USDC access, custody, and cross-chain movement on Arc.

Circle aims to connect the dollar-centric forex market directly with USDC. Following Arc's launch, decentralized exchange EdgeX quickly introduced JPYUSDC perpetual futures based on Japanese yen. While currently limited to derivatives, future plans include building a spot forex market where USDC can be exchanged directly for other currencies once sufficient liquidity in non-dollar stablecoins is established.

Unlike traditional forex markets operating only during business hours, Arc enables 24/7 trading including weekends. The platform also processes both transactions and settlements on one network—a key differentiator from existing financial infrastructure. However, regulatory challenges remain significant as forex involves cross-border capital controls, licensing requirements, and anti-money laundering (AML) regulations.

Kim noted that while blockchain technology is important, legal frameworks will be more critical for forex adoption. Circle's advantage lies in USDC's relatively clear legal status compared to other stablecoins. CEO Jeremy Allaire emphasized Arc's goal of achieving 'the highest capital-efficient liquidity level' on launch day, aiming to make value flow through Arc.

Early data shows rapid USDC inflow: within two hours of mainnet launch, over 370 million USDC was locked in the network across 176,000 on-chain addresses. Institutional interest is growing, with BlackRock planning to deploy its tokenized money market fund 'Beacon' on Arc and DTCC set to tokenize assets on the platform by late 2024.