Circle advances native arc token plans as stablecoin-focused blockchain matures

Circle is moving deeper into its blockchain strategy, confirming that an arc token is under active consideration as its infrastructure roadmap evolves.

Circle explores native token for Arc blockchain

During Circle’s Q4 2025 earnings call, CEO Jeremy Allaire said the company is exploring a native token for the Arc blockchain and has developed a strong understanding of how such a token could function. However, he did not provide any specific launch timetable.

Allaire explained that the company is analyzing how a token might underpin the network’s economic and governance model. Moreover, he emphasized that the team is focused on designing mechanisms that align long-term incentives for participants across the ecosystem.

“We are getting a very good understanding of how a token can play a key role in providing stakeholder incentives, governance, security, utility and other things on the Arc network,” Allaire said. That said, he declined to commit to any date for a public rollout.

Arc testnet progress and mainnet timeline

The company launched the public testnet for Arc in October 2025, marking a key milestone for the project. At that time, Circle indicated that a full mainnet release is expected later this year, signaling that development is progressing according to its original roadmap.

Arc was first announced in August last year as a network specifically designed for issuing and transacting stablecoins. Furthermore, Circle positioned Arc as an infrastructure layer where settlement is faster and transaction costs are lower than on many existing public blockchains.

By tailoring the architecture for high-volume payments and stablecoin flows, Circle aims to make Arc competitive with both traditional payment rails and other crypto networks. In this context, a future arc token could become central to securing the chain and coordinating network participants.

Design focus: utility, incentives and governance

Allaire’s comments suggest that the company’s native token plans go beyond simple transactional utility. Instead, Circle appears to be weighing a design in which the asset supports security, governance voting and protocol-level rewards.

Moreover, the CEO’s remarks highlight that arc stakeholder incentives are being considered as part of a broader framework for long-term sustainability. This may include models where validators, developers and other contributors receive on-chain rewards tied to network usage and performance.

Such an approach would mirror token designs seen on other modern layer-1 and layer-2 networks. However, Circle’s focus on regulated digital assets and stable-value instruments could influence how governance and reward mechanisms are structured on Arc.

Debate around stablecoin-focused blockchains

The emergence of Arc has fed into a wider industry debate about so-called “stablecoin chains“. Kevin Lehtiniitty, CEO of Borderless.xyz, told The Defiant last year that this race risks recreating fragmented payment systems under fresh branding.

As Lehtiniitty argued, the competition for a dominant “stablecoin chain” could ultimately undermine the promise of open finance if networks remain siloed. Instead, he believes the sector should prioritize seamless connections between chains and compatible standards.

“The answer that does push open finance forward in my mind is connectivity and interoperability; not another chain or another token,” Lehtiniitty said. Nevertheless, Circle’s vision for the Arc network utility appears to target both performance and integration with the broader crypto ecosystem.

Outlook for Arc and Circle’s token strategy

Circle has not disclosed any details about a potential arc token price, distribution model or regulatory treatment. For now, the company is signaling that design and compliance considerations remain front and center as it refines its native token plans.

Moreover, the progression from Arc’s testnet launch in October 2025 toward a mainnet debut later this year will likely determine how quickly any token proposal can move forward. Market participants will be watching these developments closely as Circle advances its native token plans in the stablecoin infrastructure race.

In summary, Circle’s work on Arc and a possible native asset underscores its ambition to build a purpose-built, stablecoin-centric blockchain, even as industry voices urge greater interoperability over launching yet another chain.