Arc

Arc is a purpose-built, EVM-compatible Layer-1 blockchain advancing the frontier of stablecoin finance and tokenization. It features USDC as native gas, deterministic settlement finality, opt-in privacy, and a stable transaction fee architecture. Optimized for stablecoin-native use cases, such as global payments, FX, and capital markets, Arc serves as a foundational settlement layer for programmable money on the internet.

General
CompanyCircle Internet Group
WebsiteArc Network
Documentationhttps://www.arc.network/litepaper
TypeLayer-1 Blockchain
LaunchPublic Testnet Fall 2025, Mainnet Beta 2026
ConsensusMalachite (Byzantine Fault Tolerant)
CompatibilityEVM-Compatible

Core Architecture

Malachite Consensus Engine

  • High-performance Byzantine Fault Tolerant (BFT) consensus
  • Built on Tendermint algorithm with Rust implementation
  • Sub-second deterministic finality (under 350ms with 20 validators)
  • Performance up to 10,000 TPS with 4 validators
  • No probabilistic confirmations or chain reorganizations

USDC as Native Gas Token

  • Transaction fees paid directly in USDC stablecoin
  • Predictable, dollar-denominated costs for enterprises
  • Eliminates volatile crypto token exposure for gas payments
  • Enhanced EIP-1559 fee mechanism with weighted moving averages
  • Stable transaction fee architecture optimized for business use

EVM Compatibility

  • Full Ethereum Virtual Machine compatibility
  • Seamless migration of existing Ethereum applications
  • Support for existing developer tools and frameworks
  • Native integration with Solidity smart contracts

Key Features

Deterministic Settlement Finality

  • Transactions achieve irreversible finality in under 1 second
  • No risk of chain reorganizations or reversals
  • Guaranteed final settlement for enterprise applications
  • Superior to probabilistic finality models

Built-in FX Engine

  • Institutional-grade Request-for-Quote (RFQ) system
  • 24/7 on-chain foreign exchange and settlement
  • Payment-versus-Payment (PvP) atomic swaps
  • Support for multiple stablecoin pairs (USDC, EURC, etc.)
  • Perpetual futures markets for stablecoin trading

Opt-in Privacy Controls

  • Confidential transfers hiding transaction amounts
  • Addresses remain visible for compliance
  • View keys for selective disclosure to regulators/auditors
  • Trusted Execution Environment (TEE) implementation
  • Future support for MPC, FHE, and Zero-Knowledge proofs

MEV Mitigation

  • Classification of constructive vs. harmful MEV
  • Encrypted mempools to prevent front-running
  • Batch transaction processing
  • Multi-proposer mechanisms for fair ordering
  • Protection against sandwich attacks and value extraction

Enterprise Integration

Circle Platform Integration

  • Native support for Circle Payments Network (CPN)
  • Full integration with USDC, EURC, and USYC tokens
  • Circle Mint, Wallets, and Contracts compatibility
  • Cross-Chain Transfer Protocol (CCTP) support
  • Gateway interoperability service integration

Real-World Asset Tokenization

  • Support for tokenized equities, bonds, and securities
  • Private credit and institutional fund tokenization
  • Partnership with licensed asset issuers and custodians
  • Regulated real-world asset (RWA) framework
  • Compliance-ready tokenization infrastructure

Institutional Validator Network

  • Permissioned Proof-of-Authority consensus initially
  • Hand-selected institutional validators
  • Geographic distribution of validator nodes
  • High compliance and regulatory standards
  • Future transition to broader validator participation

Use Cases

Global Payments & Remittances

  • Cross-border payments with instant settlement
  • Reduced intermediary costs and complexity
  • 24/7 operation independent of banking hours
  • Multi-currency stablecoin support

Capital Markets & Trading

  • Institutional trading settlement
  • Tokenized securities and derivatives
  • Automated delivery-versus-payment (DvP)
  • Real-time collateral management

Foreign Exchange

  • On-chain FX trading and settlement
  • Stablecoin pair perpetual futures
  • Institutional-grade price discovery
  • Automated currency conversion

Treasury Management

  • AI-powered treasury optimization
  • Yield-bearing stablecoin integration (USYC)
  • Programmable finance workflows
  • Automated compliance reporting

Technical Specifications

  • Throughput: 3,000-10,000 TPS depending on validator count
  • Finality: Sub-second (100-350ms) deterministic settlement
  • Consensus: Malachite BFT based on Tendermint
  • Virtual Machine: Ethereum Virtual Machine (EVM) compatible
  • Gas Token: USDC native gas payments
  • Privacy: Opt-in confidential transfers with compliance features
  • Interoperability: Cross-chain bridges and CCTP integration

Development Timeline

  • Private Testnet: August 2025 (launched)
  • Public Testnet: Fall 2025
  • Mainnet Beta: 2026
  • Full Production: TBD with community and regulatory readiness

Arc represents Circle's vision for a stablecoin-native financial infrastructure that bridges traditional finance with programmable blockchain technology, designed specifically for enterprise adoption and regulatory compliance.

Arc AI technology page Hackathon projects

Discover innovative solutions crafted with Arc AI technology page, developed by our community members during our engaging hackathons.

Arcent Agent MCP

Arcent Agent MCP

Problem: AI agents can think, not act on-chain. No wallet, no contract calls, no way to pay paywalled APIs. Every economic action needs a human signature — breaking the autonomous agent promise. Solution: Arcent wraps Arc's agent economy in 17 MCP tools, so any MCP client (Claude, Cursor, ChatGPT Desktop) acts on-chain via natural language: - 3 Identity tools (ERC-8004 Trustless Agents) - 8 Job tools (ERC-8183 Agentic Commerce, 6-state escrow) - 4 Payment tools (Circle App Kits — send, swap USDC/EURC, bridge CCTP v2, balance) - 2 Nanopayment tools (Circle Gateway + x402 — deposit, pay) Tell Claude: "Register my agent, create a 10 USDC job, escrow it, pay this paywalled API 50 times." Arcent translates it into contract calls, signs, and returns receipts. Demo (Track 2): Our test-seller/ (custom Express + x402, Circle-compatible) + MCP tools as buyer. Three rounds: - R1: 300/300 settled clean baseline - R2: 85/88 edge probes (3 bad URLs failed gracefully, 0 charge) - R3: Hardened 1000/1000 stress — 0 fail, 0 dup, buyer/seller reconciliation MATCH ($10.325 = $10.325, diff 0), p95=425ms, total gas $0.008 Combined: 1,385 settlements, 27x the 50-call minimum. Traditional CCTP would cost $300+ gas; Arcent = $0.008 → 36,787x reduction. Honest limits: Testnet only. Minimal seller harness, no productized framework. Partial reputation (feedback only). MCP clients are the UI. Timeline note: Base toolkit prototyped April 10–17; final integration, 1K stress runs, demo video, deck produced explicitly during the Apr 20–26 event window. All public standards (ERC-8004, ERC-8183, x402). Arcent is the first MCP-native toolkit wrapping them together. MIT licensed. Repo: github.com/sametarsslan19913/arcent-agent-mcp Domain: arcent.ink Not affiliated with cutepawss/arcent (x402 gateway) or U.S. Army Central.

AgentFlow — Live Economic Visibility for AI Agents

AgentFlow — Live Economic Visibility for AI Agents

AgentFlow is a real-time economic execution layer for AI agents, designed to demonstrate how intelligent systems can operate, collaborate, and transact in a fully on-chain environment. Instead of treating AI as isolated tools, AgentFlow models a marketplace where multiple specialized agents interact economically. Each agent performs a distinct role within a task pipeline, such as planning, research, generation, evaluation, and presentation. Every action is priced in sub-cent increments, and every payment is settled using USDC on Arc through Circle Nanopayments. When a user submits a task, the system routes it through a network of agents. These agents can compete on price, collaborate to complete work, and even subcontract portions of tasks to other agents. Each interaction produces a verifiable on-chain transaction, creating a transparent and auditable economic flow. The platform provides live economic visibility through a dashboard that tracks transactions, agent earnings, settlement timelines, and cost distribution. Users can explore how funds move through the system, view transaction hashes, and verify payments directly on the Arc Block Explorer. AgentFlow highlights a fundamental limitation of traditional blockchains. On networks like Ethereum, transaction fees can exceed the value being transferred, making micro-transactions economically impossible. In contrast, Arc enables near-zero-cost settlement, allowing agents to exchange value continuously without friction. This makes it possible to unlock a new class of applications where AI agents operate as autonomous economic actors, capable of bidding, collaborating, and settling value in real time. AgentFlow demonstrates that the future of AI is not just intelligent systems, but intelligent systems with economic agency. By combining Arc and Circle’s infrastructure, it shows how a scalable, transparent, and efficient agent economy can be built today.