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Circle has raised $222 million through a private presale of ARC, the native token connected to its new Arc blockchain, valuing the network at roughly $3 billion.
The round drew backing from some of the biggest names in finance and crypto, including Andreessen Horowitz, BlackRock, Apollo, Intercontinental Exchange, ARK Invest, Bullish, Haun Ventures, Standard Chartered Ventures, SBI Group, Janus Henderson, General Catalyst, Marshall Wace and IDG Capital. Andreessen Horowitz reportedly led the round with a $75 million commitment.
The raise is important because Arc is not being pitched as another speculative Layer 1 chasing retail attention. Circle is positioning it as stablecoin-native financial infrastructure, built around USDC and designed for payments, tokenized assets, onchain markets, contracts and AI-driven financial activity.
Unlike most blockchains, Arc uses USDC for transaction fees rather than a volatile native gas token. That may sound like a small technical detail, but it matters for institutions. Predictable dollar-based fees are easier to model, easier to explain internally and easier to integrate into existing payment and treasury systems.
Circle launched Arc’s public testnet in October 2025, with more than 100 companies involved across finance, payments and technology. Early participants included BlackRock, Visa, HSBC, AWS, Anthropic, Apollo, BNY, ICE, Goldman Sachs, Deutsche Bank, Standard Chartered and others. Circle described Arc as an “Economic Operating System” for the internet, with features including sub-second finality, opt-in privacy and direct integration with Circle’s wider platform.
The timing is also worth noting. Circle disclosed the raise alongside its Q1 2026 results, which showed USDC circulation rising 28% year over year to $77 billion. Total revenue and reserve income increased 20% to $694 million, while USDC onchain transaction volume jumped 263% to $21.5 trillion.
That gives the Arc story more weight. Circle is not launching this from a standing start. It already has one of the largest dollar-backed stablecoins in the market, public company status, institutional relationships and a growing payments narrative around USDC.
The bigger question is whether Arc can become the default chain for regulated stablecoin activity, or whether it simply becomes another blockchain competing for developer and institutional attention.
Circle’s advantage is clear. USDC already sits at the center of a large share of onchain dollar movement. If Arc can make that activity faster, cheaper and more institution-friendly, it gives Circle a stronger grip on the stablecoin stack, not just the token itself.
But the risks are just as obvious. Arc will need to prove it can attract real usage beyond testnet partners and investor names. It will also need to balance decentralization with Circle’s brand as a regulated, compliance-first company. According to reporting on the presale terms, Arc is expected to transition toward proof of stake by May 8, 2028, with investor repayment rights if certain delivery milestones are not met.
For now, though, the raise shows where the market is moving. The stablecoin story is no longer just about which token has the most supply. It is becoming a race to own the infrastructure beneath digital dollars.
Circle’s $222 million Arc raise suggests major institutions now see that infrastructure as a serious battleground. Stablecoins started as crypto trading tools, but the next phase looks much more like payments, treasury, settlement and AI-native finance.