Circle's Arc Payments Blockchain Launches with Predictable Fees and Instant Settlement

Circle has launched its payments blockchain Arc to institutional clients, bringing predictable transaction costs and sub-second settlement. The network uses USDC stablecoin fees and is designed for treasury departments moving money between subsidiaries. Circle says more than 100 applications were available at launch.

Arc operates as a Layer-1 blockchain, processing transactions and reaching agreement on its own ledger. It's compatible with the Ethereum Virtual Machine, allowing developers to reuse familiar programming tools. The network brings payments, currency exchange, and tokenized investment products into one environment.

Transaction fees are paid in USDC, eliminating the need for a separate cryptocurrency holding. Fees are adjusted using an average of recent network demand, preventing abrupt jumps in costs. However, network demand and transaction complexity still affect the charge.

Circle faces established rivals, including Tempo, which offers similar stablecoin-focused design. Ethereum and Solana also attract financial institutions through different payment tools and distribution. Circle's commercial pitch centers on its existing payments and foreign-exchange services.