Circle Launches Arc Mainnet with Major Financial Institutions as Validators

Circle has officially launched the public mainnet of Arc, a Layer 1 blockchain designed to facilitate transactions using USDC, on September 15, 2026. This innovative platform distinguishes itself by having a fixed group of regulated financial institutions, including BlackRock, the Depository Trust & Clearing Corporation, Visa, and others, produce blocks instead of relying on an open validator market. The network aims to streamline transaction processes while ensuring compliance and stability in the financial ecosystem.

The Arc blockchain is engineered to support high transaction throughput, boasting a capacity of over 3,000 transactions per second and achieving deterministic finality in under one second. Transaction fees are set in USDC, with a target base fee of approximately $0.01 per transaction. This fee structure is designed to mitigate volatility, a common issue in many blockchain networks. Circle's co-founder, Jeremy Allaire, emphasized the significance of this launch, stating that it embodies the company's long-standing vision of integrating financial systems with internet technology.

At launch, Arc features over 100 applications and has attracted a developer community of more than 75,000 members. The platform also incorporates lending markets powered by Aave and Morpho, enhancing its decentralized finance (DeFi) capabilities. Circle has minted 10 billion ARC tokens, marking a significant milestone as it becomes the first publicly traded company to issue a network token for a new Layer 1 blockchain. The company plans to explore a transition from proof-of-authority to proof-of-stake by 2027, indicating a potential evolution in its governance model.

Despite the excitement surrounding the launch, the permissioned nature of Arc has sparked debate within the blockchain community. Critics argue that this model diverges from the principles of decentralized finance, suggesting that it may not fully align with the ethos of open blockchain networks. Nevertheless, Circle is positioning Arc as a foundational layer for future financial applications, particularly in the realm of AI-driven transactions and cross-currency settlements.

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Source: KLEA News