Arc Public White Paper Released! Circle Launches New Blockchain Network Specifically Designed for Stablecoin Finance
Circle Announces Launch of New Blockchain Platform Named Arc
Circle has announced the launch of a new blockchain platform called Arc, attempting to completely rewrite the operational model of traditional finance. Arc is an open Layer-1 blockchain specifically designed for stablecoin finance, particularly targeting high-frequency financial applications such as cross-border payments, foreign exchange trading, and capital markets. According to the white paper, Arc will use USDC as its native payment gas and introduce key innovations such as stable transaction fees, instant settlement, and optional privacy, aiming to create an on-chain financial system suitable for institutional-grade applications.
Stablecoins as Fuel Fees? USDC Becomes Arc’s Native Gas
A major highlight of Arc is its use of the USDC stablecoin as the native asset for transaction fees. Compared to the previous use of highly volatile tokens like ETH or BTC, Arc’s design reduces accounting and operational complexities, allowing enterprise users to more easily conduct financial planning. Furthermore, Arc will support transaction fees in other regional stablecoins or tokenized fiat currencies, further lowering the entry barriers.
Transactions Confirmed in Just Seconds? Sub-Second Settlement Mechanism Unveiled
Arc employs the Malachite consensus engine, providing “deterministic settlement” functionality. This means that once a transaction enters a block, it cannot be rolled back or reorganized, avoiding the reorganization risks seen in Ethereum or Bitcoin. Transactions on Arc reach a final state within one second, significantly improving transaction efficiency and capital utilization. This is crucial for high-value payments, institutional finance, or international settlements.
Fast and Stable! Performance Up to 10,000 TPS
Arc emphasizes its institutional-grade performance, capable of processing over 3,000 transactions per second with 20 globally distributed validation nodes; when the number of nodes is reduced to four, TPS can exceed 10,000! Testing shows that latency can be as low as 100 milliseconds, far surpassing existing chains and traditional payment systems like Fedwire.
Unprecedented Privacy Design Balancing Compliance and Confidentiality
The privacy mechanism introduced by Arc is optional. Initially, it will implement “Confidential Transfers,” where transaction amounts are encrypted while addresses remain visible, with plans to further introduce private states and confidential computing in the future. This is not only to protect corporate data but also to ensure compliance with regulatory requirements, such as audits and reviews by financial regulatory authorities.
Combating Malicious Arbitrage: MEV Classification and Governance Strategy
The common blockchain issue of “Maximum Extractable Value (MEV)” is also addressed in Arc’s roadmap. Arc will categorize MEV into constructive and destructive types, where the former, such as exchange rate arbitrage, helps stabilize markets, while the latter, like “sandwich attacks,” detracts from user experience. Arc plans to reduce the occurrence of destructive MEV through mechanisms such as encrypted transaction pools, batch processing, and multi-proposal approaches to create a fairer market environment.
Not Just Circle’s Platform: Open Financial Innovation
Although developed under the leadership of Circle, Arc is an open platform. In addition to supporting assets issued by Circle such as USDC, EURC, and USYC, Arc allows other stablecoin and fiat asset issuers to participate. Furthermore, it supports programmable foreign exchange (Programmable FX) and tokenized asset issuance, such as government bonds, stocks, and private equity funds, paving the way for the future integration of DeFi and CeFi.
Cross-Chain Real-Time Communication: Arc Combines Circle Ecosystem to Become a Stablecoin Liquidity Hub
Arc is not just a chain; it is a cross-chain stablecoin application hub. By integrating with Circle’s CCTP, Gateway, and other products, users can quickly fund USDC from traditional banks and then deploy it to other on-chain applications across chains. Its unique “deterministic settlement” also allows for near-instant completion of stablecoin burning and re-minting between different chains, significantly reducing time and trust costs.
Enterprise-Level Payments and Smart Financial Agents
The modular payment tools offered by Arc enable enterprises to create bespoke on-chain financial processes, such as invoice-attached transactions, dispute refund mechanisms, and AI financial agents, supporting global supply chains, payroll, and financial automation. In conjunction with the Circle Payments Network (CPN), Arc is expected to become the foundational infrastructure for enterprise-level blockchain payments.
Development Roadmap: Testnet Launching This Fall
Arc plans to launch its public test network in the fall of 2025, with the mainnet supporting core functions such as USDC gas, second-level settlement, and FX engines. Subsequent versions will incorporate privacy protection and MEV mitigation measures, ultimately transitioning from the current authorized PoA consensus to a PoS architecture involving institutional participation, achieving greater decentralization and security.
Arc as the Infrastructure of Future Finance, Not Just Another Chain
Arc is not intended to replace existing systems, but rather to combine the stability of traditional finance with the openness and automation of blockchain. From stablecoin payments and cross-border settlements to tokenized assets and smart finance, Arc aims to create a new financial era driven by compliance and speed. This is not only Circle’s ambition but also an invitation for a global financial restructuring.
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