Circle Unveils New Blockchain Arc to Bolster USD Coin Dominance

Circle, the fintech company behind the widely used USD Coin (CRYPTO: USDC) stablecoin, has announced the development of a new blockchain called Arc. Unlike general-purpose blockchains like Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), Arc is natively built for stablecoin-driven transactions.

Arc's advantages include faster transaction times - under half a second - and lower fees, making it an attractive option for large financial institutions. The new blockchain also runs 24/7 and instantly crosses borders, outperforming SWIFT transfers in terms of speed and efficiency.

Circle has attracted major backers such as BlackRock, Visa, Mastercard, Standard Chartered, MoneyGram, and Intercontinental Exchange, the parent company of the New York Stock Exchange. This support is significant because Arc will give Circle's USDC an edge against its decentralized rival, OUSD. The new blockchain settles transactions faster than OUSD and is built to run its own DeFi applications.