Circle Unveils Stable Blockchain Arc with Big Backers
Circle, the fintech company behind the USD Coin (USDC) stablecoin, has introduced Arc, a new blockchain designed for stablecoin-based transactions and cross-border settlements. Unlike general-purpose blockchains like Ethereum (ETH) and Solana (SOL), which require users to hold volatile native tokens, Arc is built from scratch to handle these tasks.
The Arc blockchain offers several advantages over traditional payment systems: it settles transactions in under half a second for a fraction of a cent, runs 24/7, and instantly crosses borders. This makes it faster, cheaper, and more flexible than SWIFT transfers.
Arc has attracted major financial institutions as backers, including BlackRock, Visa, Mastercard, Standard Chartered, MoneyGram, and Intercontinental Exchange (the parent company of the New York Stock Exchange). These companies are drawn to Arc's stability, which is provided by Circle's USD Coin, pegged to the U.S. dollar and backed by cash and U.S. Treasuries.