Circle's New Blockchain Arc Attracts Big Firms Amid Stablecoin Competition
Circle has unveiled Arc, a new blockchain for stablecoin-driven transactions, cross-border settlements, and tokenized real-world assets. Unlike general-purpose blockchains like Ethereum and Solana, Arc was built from scratch to handle these tasks.
Arc is already attracting major financial institutions such as BlackRock, Visa, Mastercard, Standard Chartered, MoneyGram, and Intercontinental Exchange, the parent company of the New York Stock Exchange. These companies are lining up for Arc because it settles transactions faster than SWIFT transfers, running 24/7 and instantly crossing borders.
The new blockchain is natively built for stablecoin-driven transactions, giving Circle's USDC an edge against its decentralized rival OUSD. With Arc, Circle can pull these companies back into its ecosystem, making it a more appealing investment opportunity. The company will still generate most of its revenue from the interest collected on its own cash and Treasury holdings.