What Is Arc? The Stablecoin Blockchain From USDC Issuer Circle
Circle has launched Arc, a Layer-1 blockchain platform specifically designed for stablecoin applications, addressing infrastructure challenges for institutional adoption. Arc offers instant, irreversible transaction settlement, predictable fees in stablecoins, optional privacy features for regulatory compliance, and connections to other blockchains and traditional finance. The fee model is based on Ethereum’s EIP-1559 but uses a weighted moving average to maintain low costs. Arc's consensus layer employs a Byzantine Fault Tolerant engine and plans to transition to a permissioned Proof-of-Stake mechanism. It includes a modular privacy system allowing confidential transfers and selective data disclosure to regulators. Arc aims to enhance the utility of stablecoins for real-time settlement and tokenization while leveraging Circle's established position in the market as the issuer of USDC.
