Circle Launches Own Layer 1 Blockchain, Arc, With Ambitious New Strategy

Circle has officially launched its own Layer 1 blockchain, Arc, marking a significant shift in the company's strategy. Until now, Circle has focused on distributing USDC to various platforms where users already exist. With Arc, Circle is building its own blockspace instead of renting someone else's.

Arc is an EVM-compatible Layer 1, meaning Ethereum applications can be redeployed there directly without needing to learn a new programming language or rebuild from scratch. Transactions are executed through an Ethereum-compatible Reth client and finalized by Circle's Malachite consensus engine.

One of Arc's key differentiators lies in the foundational optimizations Circle built around it, including gas fees paid directly in USDC, transactions achieving finality in under a second, and developers being able to deploy without permission. The network also supports post-quantum wallet signing from day one.