Arc Blockchain Launches with Big-Name Backers, But Can It Deliver?

Circle Internet Group's (CRCL) Arc blockchain has officially launched, and it's backed by some big names in the financial sector. BlackRock, Visa, Mastercard, DTCC, ICE, Standard Chartered, and Galaxy are among the eleven founding institutions that have secured the network alongside Circle. This move marks a significant step for Circle, as 95% of its revenue still comes from interest earned on USDC reserves.

The Arc blockchain is designed to be a more user-friendly alternative to existing blockchains, with users paying fees in USDC instead of volatile native assets. CEO Jeremy Allaire has described it as an 'economic operating system' and compared it to Amazon Web Services (AWS) in terms of its potential scale.

The launch of Arc has been met with some skepticism, however, with early activity skewed towards memecoin and decentralized-exchange volume rather than institutional settlement. The success of Arc will depend on the adoption of developers, and whether it can live up to Allaire's ambitious claims remains to be seen.