What is Arc? Circle's Layer-1 Blockchain for Internet Finance

Arc is an open Layer-1 blockchain designed to integrate programmable money and on-chain innovation with real-world economic activity, serving as the Economic OS for the internet.

Arc’s Core Principles: Purpose-Built for Global Coordination

Arc embodies five guiding principles:

• Purpose-Built, Not General-Purpose: Optimized for lending, capital markets, FX, and payments, not broad computation.
• Open and Composable by Default: EVM-compatible for seamless dApp deployment and interoperability.
• Market-Neutral and Multichain-Aligned: Supports stablecoins as gas (starting with USDC) for predictable fees.
• Built to Coordinate, Not Control: Permissioned validators for security; open access for users and developers.
• Trusted Infrastructure End-to-End: Sub-second finality, opt-in privacy, and Circle’s full-stack tooling.

These principles foster a scalable, compliant ecosystem for internet-scale finance.

Technical Architecture: EVM and Stablecoin Gas

Arc operates as a public EVM-compatible Layer-1 with deterministic sub-second finality, ensuring reliable, high-throughput transactions. Developers use familiar tools to build smart contracts, while stablecoin gas fees (e.g., USDC) provide predictability, eliminating volatility. Validator participation is permissioned for compliance, but network access is fully open, enabling global builders to innovate.

Use Cases: On-Chain Credit and Capital Markets

Arc enables:

• On-Chain Credit with Off-Chain Trust: Verifiable loans backed by real-world collateral, powering DeFi lending with institutional-grade security.
• Capital Markets Settlement and Tokenized Collateral: Instant clearing for tokenized stocks, bonds, and RWAs, reducing settlement times from T+2 to seconds.
• Stablecoin FX: Frictionless currency swaps via USDC, facilitating global FX with 24/7 liquidity.
• Agentic Commerce: AI agents transact autonomously for data, computations, or goods, with verifiable privacy.
• Cross-Border Payments and Payouts: Sub-second remittances and payroll via stablecoins, cutting fees by 90%.

These applications unlock $16 trillion in RWAs by 2030, per BCG.

(Sources: Arc Public Testnet)

2025 Outlook: $10T Internet Finance Market

Arc could capture 5-10% of the $10 trillion internet finance surge, with Ethereum integration and Circle’s USDC liquidity fueling adoption. Risks include validator centralization, but open composability mitigates them.

For investors, how to buy USDC via compliant platforms ensures entry. How to sell USDC and how to cash out USDC offer liquidity. Sell USDC for cash and convert USDC to cash enable fiat conversions.

In summary, Arc’s Layer-1 for programmable money signals a maturing internet economy, blending Ethereum compatibility with stablecoin efficiency for DeFi’s 2025 surge.