Circle Raises $222M to Build Its Own Blockchain for Stablecoins
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Circle, the issuer of the USDC stablecoin and now listed on the New York Stock Exchange, has raised $222 million from a consortium of prominent investors as part of a token presale. The proceeds will go toward building Arc, a proprietary Layer-1 blockchain that Circle is positioning as the infrastructure layer for stablecoin-based financial markets. At the center is the ARC Token, designed as the network’s native coordination instrument.
Until now, USDC tokens have run on 34 different blockchains, including Ethereum, Solana, Arbitrum, Optimism, Algorand, Avalanche, and many others. Circle is now moving to build its own in-house blockchain for stablecoins. This is not unlike Stripe’s project called Tempo, which is being built together with OpenAI, Revolut, Visa, Nubank, and others (more on that here).
What is the ARC Token and what is it used for?
Arc is a Layer-1 blockchain developed by Circle that, according to the whitepaper published on May 11, 2026, is intended to serve as an “Economic Operating System” for stablecoin finance and tokenized markets. The ARC Token is the native asset of this network and fulfills five interconnected functions.
- Governance: ARC holders can participate in decisions about the further development of the network.
- Network security: The token serves as the foundation for the consensus mechanism and the security of the network.
- Network operations: ARC supports the ongoing operation of the blockchain infrastructure.
- Staking: Tokens can be used to participate in the validation process and earn rewards.
- Ecosystem growth: A large portion of the tokens is reserved for developers, grants, and the expansion of the network.
Technically, Arc relies on a hybrid consensus mechanism. Initially, the network operates with a Proof-of-Authority (PoA) model, in which approved validators confirm transactions. In the long term, a transition to Proof-of-Stake (PoS) is planned in order to gradually decentralize the network.
Token distribution: Who gets how much?
The total supply of the ARC Token is fixed at 10 billion units. Circle has divided the distribution into three categories.
| Category | Share | Purpose |
|---|---|---|
| Ecosystem | approx. 60% | Developers, grants, network growth |
| Circle | 25% | Development, staking, governance participation |
| Long-term reserve | 15% | Stability and flexibility during stress periods |
As part of the presale, 740 million ARC Tokens were sold at a price of $0.30 each. This corresponds to a fully diluted network valuation of $3 billion. The sale was conducted as a private placement exempt from the registration requirements of the U.S. Securities Act of 1933, it is stated.
Who invested and why?
The presale was led by a16z Crypto and accompanied by a broad consortium of institutional investors. The participation of well-known names from the financial world and the technology sector underscores the strategic interest in stablecoin-based blockchain infrastructure.
- a16z Crypto (lead investor)
- Apollo Funds
- ARK Invest
- BlackRock
- Bullish
- General Catalyst
- Haun Ventures
- Intercontinental Exchange (ICE)
- IDG Capital
- Janus Henderson Investors
- Marshall Wace
- SBI Group
- Standard Chartered Ventures
The participation of financial institutions such as BlackRock, Apollo, and Standard Chartered suggests that Arc is seen not merely as a technical infrastructure project, but as a potential platform for regulated financial products and tokenized assets.
Circle’s strategic logic behind Arc
Circle first introduced Arc in August 2025. With the presale and the simultaneously published whitepaper, the company is now taking a decisive step to evolve from a pure stablecoin issuer into a provider of blockchain infrastructure. Arc is intended to serve as a settlement layer for stablecoin transactions, tokenized assets, and programmable financial markets.
“Circle’s first quarter reflected strong execution in the face of a much larger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack. With the ARC Token presale, the momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a programmable internet financial system.”
Jeremy Allaire, co-founder and CEO of Circle, explicitly links Arc to the topic of artificial intelligence. In parallel, the company has introduced its so-called “Agent Stack,” which is intended to enable developers to build AI-driven payment applications based on USDC. Arc is meant to serve as the foundation for this agent-driven economic infrastructure.
Financial context: Circle’s Q1 2026
The presale comes at a time when Circle is growing but also recording higher costs. In the first quarter of 2026, total revenue including reserve income rose 20 percent to $694 million. USDC in circulation grew 28 percent to $77 billion, while on-chain transaction volume increased 263 percent to $21.5 trillion.
At the same time, net income fell 15 percent to $55 million, as operating costs rose sharply following the IPO, primarily due to stock-based compensation. Adjusted EBITDA, however, improved 24 percent to $151 million. The stock (NYSE: CRCL) gained around 3 percent in pre-market trading on the day of the announcement to $116.70 and is up more than 40 percent since the beginning of the year.
