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Circle's Arc Blockchain: USDC as Gas for Stablecoin Payments

Circle's Arc Blockchain: USDC as Gas for Stablecoin Payments

Layer 1s

Circle Launches Arc Blockchain for Stablecoin Payments

USDC issuer Circle is making a significant move to bolster its position in the stablecoin market with the launch of 'Arc,' a dedicated Layer-1 network. The Circle Arc blockchain is engineered to facilitate stablecoin payments, with USDC serving as its native gas token.

Key Details About the Circle Arc Blockchain

Announced via a press release, Arc is designed as an open, enterprise-grade Layer-1 blockchain, optimized for stablecoin transactions, FX applications, and capital markets.

  • EVM Compatibility: The Circle Arc blockchain is fully compatible with the Ethereum Virtual Machine.
  • USDC as Gas: Transactions on Arc will be paid using USDC.
  • Integrated FX Engine: Features a built-in stablecoin foreign exchange engine.
  • Fast Settlement: Aims for sub-second finality.
  • Privacy Controls: Includes optional privacy features.

Integration and Interoperability

Circle plans to fully integrate the Arc network across its existing platform and services. The blockchain will be interoperable with other partner networks supported by Circle. A public testnet launch is scheduled for this fall.

Q2 Earnings and Strategic Developments

The Arc announcement coincided with Circle's Q2 earnings release, following its IPO in June, where the company raised $1.2 billion.

Other key developments highlighted include the passage of the GENIUS Act, reinforcing Circle’s commitment to regulatory compliance, and the growth of the Circle Payments Network (CPN), now with four active payment corridors and over 100 financial institutions in its pipeline. Circle also introduced Circle Gateway in July to unify USDC balances across chains.

For developers looking to build on Circle's Arc blockchain or other EVM-compatible networks, ensuring smart contract security is crucial. Platforms like Codeum offer comprehensive auditing services to identify vulnerabilities and optimize code.

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