Circle Launches New Blockchain Arc, Gaining Major Financial Backing
Circle Internet Group has launched its new blockchain called Arc, which is designed to handle stablecoin-driven transactions and cross-border settlements. This move is significant because it will give Circle's USDC a competitive edge over other stablecoins like OUSD.
Arc has already attracted major financial institutions such as BlackRock, Visa, Mastercard, Standard Chartered, MoneyGram, and Intercontinental Exchange to its ecosystem. The blockchain is built from the ground up for stablecoin-based transactions, unlike general-purpose blockchains like Ethereum and Solana that require users to hold volatile native tokens.
The Arc blockchain uses Circle's USD Coin (USDC) as its primary currency, which is pegged to the U.S. dollar and backed by the company's cash and U.S. Treasuries. This stability makes it more appealing to large financial institutions, which prefer not to pay fluctuating tolls.
Circle's Arc blockchain is also faster than traditional SWIFT transfers, moving money in less than half a second for a fraction of a cent. It runs 24/7 and instantly crosses borders.