Circle Launches Arc Mainnet with USDC as Native Gas
Circle's Arc mainnet uses USDC for both payments and fees, aiming to simplify stablecoin usage and compete with rivals.
The update
Circle has launched Arc mainnet, a layer-1 blockchain that uses USDC as both a payment method and transaction fee token. This design eliminates the need for users to hold separate tokens for payments and network fees, potentially simplifying the stablecoin experience. The network supports more than 20 fiat stablecoins and offers interoperability with over 20 blockchains through Circle’s Cross-Chain Transfer Protocol.
Why it matters
This approach could give Circle a competitive edge in the stablecoin market by making USDC more functional and user-friendly. On many blockchain networks, users must maintain separate balances for payments and fees, creating friction. Arc’s model combines these functions, allowing a single USDC balance to fund both spending and transaction costs.
What to watch
Whether Arc can attract significant user adoption and close the gap with competitors like Tether remains to be seen. Future developments include a potential transition from Proof of Authority to Proof of Stake in 2027. Readers should watch for public activity levels and institutional engagement to gauge if Arc drives new demand for USDC beyond existing holders.
Sources
- cryptoslate.com — technical details about Arc's USDC implementation and competitive positioning
- cointelegraph.com — information about supported stablecoins, blockchain interoperability, and institutional participation
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