Circle Internet Group has unveiled a new blockchain named Arc. The launch marks a strategic shift for the stablecoin developer as it seeks to broaden its operations beyond issuing the USDC stablecoin.
In a statement, Circle described Arc as a general-purpose economic operating system designed to support payments, tokenized financial markets, lending, trading, and commerce. The company stated that Arc will help it become one of the largest blockchain providers for moving money and financial assets onchain.
The introduction of Arc comes as the global stablecoin market faces increasing competition from traditional banks and payment firms. Circle faced a significant challenge earlier this year when 21 financial institutions, including Bank of America and Goldman Sachs, announced plans to launch their own U.S. dollar-backed stablecoin in 2027.
Major financial firms are already participating in the new network. BlackRock and Visa are among the first validators for the Arc blockchain. Circle is also integrating its existing payments network directly into the Arc infrastructure, along with its foreign-exchange platform for cross-currency settlement.
The company noted that transaction fees on the Arc blockchain are paid using Circle's USDC stablecoin. This integration ties the new infrastructure directly to Circle's primary asset, which currently has a market value of $74 billion.
Despite the new strategic initiative, Circle shares have struggled recently. CRCL stock has declined 36% over the past 12 months, currently trading at $86.30 U.S. per share.