Circle has launched the public mainnet of Arc, an Ethereum-compatible layer-1 blockchain built for payments, foreign exchange, and tokenized assets. Transaction fees on Arc are paid in USDC, so users do not need to hold a separate, volatile token to use the network.

Eleven institutional validators operate the network alongside Circle: BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa. Arc is designed for deterministic finality in under a second, so transactions do not become final gradually.

The network launches with permissioned validators chosen by Circle, and its roadmap calls for moving from proof-of-authority to proof-of-stake over time. Circle also released developer tools, including an application framework and features for issuing and managing tokenized real-world assets, and said more than 100 applications were available at launch.

Arc gives the second-largest stablecoin issuer its own settlement network, a shift from relying entirely on other blockchains. Its value will depend on whether payment firms and asset managers move meaningful activity there, and on how and when the validator set is opened beyond Circle's selected partners.