Arc Blockchain Explained: Everything You Need to Know About Circle’s Layer 1

Arc is a purpose-built, EVM-compatible Layer 1 blockchain being built by Circle, the company that’s behind the second-largest stablecoin in the industry, USDC. It’s designed specifically for stablecoin finance. The protocol was first announced in August 2025, and its public testnet went live in October of that year. Arc has received the backing of major Wall Street heavyweights like BlackRock, Visa, MasterCard, and more. It was created to provide blockchain infrastructure that’s specifically tailored to payments, foreign exchange, tokenized assets, capital markets, and other forms of on-chain financial activity. If you’re wondering what the difference is between an EVM-compatible Layer 1 blockchain and an Ethereum layer-two like Robinhood Chain, it’s that Arc is a dedicated, standalone blockchain that settles its own transactions and implements its own security protocols. Layer-two blockchains, by contrast, rely on Ethereum for settlement, finality, and security. That said, EVM compatibility also means that developers can use familiar tools and Solidity-based smart contracts. Its design tackles several friction points that Circle sees in existing blockchain infrastructure, includin...