Circle CEO: Arc Will Move Financial ‘Guts’ to Blockchain Rails

TLDR

• Circle CEO Jeremy Allaire described Arc as an economic operating system for the internet during an interview at the Future Investment Initiative in Riyadh.
• The Arc public testnet launched on October 28 with mainnet targeted for 2026 after builders trial smart contracts and transaction flows.
• Arc is designed specifically for payments, foreign exchange, lending, and capital markets with dollar-denominated fees and sub-second settlement times.
• Allaire stated that USDC usage has expanded throughout 2025 with strong demand from emerging markets seeking dollar settlement without traditional banking friction.
• More than 100 companies across banking, payments, technology, and AI sectors participated in the Arc announcement and ecosystem launch.

Circle Internet Group CEO Jeremy Allaire introduced Arc as an economic operating system for the internet. He made these remarks during an interview with CNBC’s Sara Eisen at the Future Investment Initiative in Riyadh. Allaire explained that Arc aims to handle core financial workflows with predictable costs and fast performance.

Arc Blockchain Targets Enterprise Financial Operations

Circle designed Arc specifically for payments, foreign exchange, lending, and capital markets. The platform offers dollar-denominated fees and sub-second settlement times for transactions. Privacy controls allow enterprises to protect sensitive financial data when needed.

The Arc public testnet launched on October 28, and development continues toward mainnet. Circle targets a 2026 mainnet release after builders have tested the smart contracts and launched the token. The testing phase will evaluate transaction flows and system performance.

Allaire described Arc as built for stablecoin-native finance with high-throughput capabilities. The blockchain provides a dollar-priced environment for financial operations. Developers can plan around USDC as the settlement and fee unit.

USDC Growth Driven by Emerging Market Demand

Allaire pushed back against claims that USDC growth has stalled in recent periods. He stated that usage expanded throughout 2025 across multiple markets. Emerging markets exhibit strong demand for dollar settlement, free from traditional banking friction.

The Middle East represents a key growth region for USDC adoption. Businesses use digital dollars to move value quickly between trading partners. This demand aligns with Circle’s regulatory progress in the United Arab Emirates.

Recent U.S. legislation for payment stablecoins has encouraged institutional adoption. Larger companies now integrate stablecoin payments into their FX and credit systems. Policy clarity has accelerated this integration process across financial services.

Circle received regulatory approval to operate in the UAE. This positioning supports institutions seeking on-chain dollar payment rails. The regulatory framework enables Circle to serve regional businesses more effectively.

Arc Ecosystem Includes Over 100 Companies

More than 100 companies participated in the Arc announcement across various sectors. The ecosystem spans banking, payments, large technology firms, and AI companies. Arc operates on a transactional and ecosystem-driven business model.

Circle plans for distributed operations and governance rather than centralized control. The company aims to avoid creating a single-company walled garden. Long-term plans emphasize broad participation across the network.

Allaire told enterprises that Arc delivers predictable costs and fast finality. Compliance-friendly privacy features support regulated financial operations. These capabilities enable more commerce to move onto programmable blockchain rails.

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