Circle, the company behind $USDC, has taken a bold step into blockchain infrastructure with the launch of Arc Network, an open Layer-1 purpose-built for stablecoin finance. With its private testnet opening soon and a public testnet expected in Fall 2025, Arc signals a new era where payments, FX, and capital markets gain the reliability and speed of programmable finance.
What makes Arc extraordinary is its design philosophy—USDC as native gas, deterministic sub-second finality, and opt-in privacy. Arc isn’t trying to be everything for everyone; it’s crafted to be the most reliable settlement layer for institutions and enterprises 🌍💵
At this stage, no official airdrops or incentive campaigns have been announced. However, Arc integrates Circle’s broader suite—including USYC, a yield-bearing digital asset. Each USYC token represents a share of the Hashnote International Short Duration Fund Ltd., a Cayman Islands mutual fund, with Circle International Bermuda Limited acting as token administrator.
USYC is only available to non-U.S. Persons under the Securities Act of 1933, with additional eligibility restrictions in place. While there is no confirmation of any distribution involving USYC, its structure by design as a tokenized fund share carries the possibility of a future airdrop.
About Arc Network
Arc is architected as an EVM-compatible Layer-1 blockchain optimized for institutional-grade stablecoin activity. At its core lies the Malachite consensus engine, developed by Informal Systems, which delivers deterministic settlement in under a second. This speed and certainty are designed for high-value use cases such as tokenized securities, collateralized settlements, and real-time FX transactions, where reliability is non-negotiable.
Strategically, Arc extends Circle’s financial infrastructure into a programmable environment that can host regulated assets at scale. It integrates with services like CCTP for cross-chain transfers, Gateway for programmable payment flows, Paymaster for transaction sponsorship, and Mint for issuance and redemption of tokens.
Together, these systems provide a foundation where capital markets, credit structures, and cross-border payments can be executed with predictable costs and regulatory alignment.
As outlined in the official Circle announcement, Arc will move forward in phases: private testnet access, a public testnet in Fall 2025, and a Mainnet Beta in 2026.
