USDC stablecoin issuer Circle has announced plans to launch Arc, its own enterprise-focused Layer 1 blockchain, according to an Aug. 12 statement.

According to the firm:

“Arc aims to establish itself as foundational infrastructure for regulated money movement, supporting a globally distributed financial system.”

Circle said Arc will integrate fully with its existing platform while maintaining interoperability with dozens of other partner blockchains.

Arc’s public testnet is scheduled for release between September and December 2025.

Circle’s Arc

Arc will serve as a high-performance base for stablecoin payments, foreign exchange (FX), and capital markets applications.

The network will be compatible with the Ethereum Virtual Machine and will use USDC as its default gas token. It also introduces a built-in stablecoin FX engine, sub-second settlement finality, and optional privacy features.

According to the blockchain network’s litepaper, Arc’s performance targets include 3,000 transactions per second (TPS) with under 350 milliseconds finality using 20 validators. Notably, the network could reach 10,000 TPS and under 100 milliseconds of finality with four validators.

Arc will also integrate confidential transfers, enabling hidden amounts with visible addresses, alongside selective disclosure via a “view key.”

Meanwhile, its MEV mitigation roadmap includes encrypted mempools, batch processing, and multi-proposer setups.

Arc will support Circle’s USYC, an interest-bearing stablecoin backed by short-term US Treasury securities. It will also offer fast bridging via Circle’s CCTP and Gateway, a built-in currency trading system for approved institutions, and AI-powered treasury management tools.

Beyond stablecoins, Arc is designed to host regulated real-world assets such as tokenized equities, bonds, private credit, and institutional-grade funds.

Circle plans to partner with licensed asset issuers, custodians, and fund administrators to ensure these assets are legally compliant, fully collateralized, and integrated with traditional financial obligations.

Community pushback

Despite its ambitious design, Arc has faced pushback from crypto community members.

Columbia Business School adjunct professor Omid Malekan argued that launching another Layer 1 is unnecessary, especially for stablecoins, which may struggle without diverse assets or strong DeFi ecosystems.

Adam Cochran, partner at venture capital firm Cinneamhain Ventures, also criticized the characterization of Arc as a Layer 1 blockchain.

According to him, the network is more accurately a consortium chain operated by a set of pre-approved, private validators. These validators, he noted, have the authority to reverse transactions through “dispute protocols.”

Moreover, he also argued that using USDC as the root token removes the economic incentives needed for validators to act independently, making a decentralized Layer 1 model unfeasible. As a result, he said, the design necessitates a closed, consortium-based structure.

Cochran concluded:

“Blockchains exist because exploitative middlemen, like banks and transfer agents, take undue fees and apply undue censorship. This industry was built to fix that in peer-to-peer systems, not by just building new banks.”

Mentioned in this article

Bored Ape Yacht Club (BAYC) has recently released an image featuring its mascot in samurai-style art. The image shows Curtis holding a flaming katana, with Japanese katakana spelling out the project’s name, whilst Jimmy the Monkey looms above the BAYC clubhouse.

The post, shared on Wednesday via the official BAYC X account, provided no context or further commentary but its sudden release prompted a wave of identical reposts from community members, raising questions about its significance.

Yuga Labs has not confirmed whether the image is connected to a new product, event, or creative direction. However, a casual remark by Yuga Labs CEO Greg Solano hinted at community interest in potential merchandise, though no such plans have been announced.

Key Insights

• BAYC teases new artwork showing mascot Curtis with a flaming sword and Japanese script
• The post coincides with other unrelated updates from BAYC, including a governance vote and more
• Yuga Labs has not confirmed whether the artwork is linked to an upcoming project

What do we know so far?

On June 18, the Bored Ape Yacht Club posted a stylised image featuring several of its recurring characters. The scene shows Curtis, the project’s primary mascot, wielding a flaming katana in front of the clubhouse, whilst “Bored Ape Yacht Club” appears in Japanese katakana. Jimmy the Monkey, another central character in the BAYC universe, is shown in the background above the structure.

The post was made without supporting explanation and no links or follow-up statements have been published by the official BAYC or Yuga Labs accounts. However, Yuga Labs CEO Greg Solano has remarked separately that a “limited edition BAYC katana would slap,” though no further plans were confirmed.

There is no current indication that the image is promotional or tied to a specific campaign.

What’s new with Bored Ape Yacht Club?

Whilst the meaning of the artwork remains unclear, BAYC has been active on multiple unrelated fronts:

• Governance Vote: The ApeCoin DAO is currently voting on AIP-596, a proposal by Solano to shut down the DAO and transfer its assets to a new entity called ApeCo. Over 20 million $Ape has already been cast and voting closes on June 26.
• Telegram Sticker Pack: BAYC has also announced an upcoming sticker drop via Telegram. The pack will contain digital collectibles with in-app emote functionality.
• Merchandise Plans: Solano also confirmed that an “always-on” online merchandise store is in development to allow BAYC members to purchase branded items year-round. However, no launch date has been announced.

As of now, there is no indication that the recently released artwork is connected to these developments as there had been no formal announcements, and no timeline provided for further updates.

The Bored Ape Yacht Club has previously used visual releases to introduce campaigns or projects, but without confirmation, it remains unclear whether this latest post is part of a larger initiative.

A closely followed crypto strategist believes Ethereum (ETH) is in a position to launch parabolic rallies, mirroring its bullish price action five years ago.

Pseudonymous analyst Inmortal tells his 232,300 followers on the social media platform X that Ethereum’s market structure on the three-day chart looks very similar to its early 2020 price action.

Five years ago, ETH traded between $100 and $200 before the Covid-induced panic ignited a crash to around $86. The downside deviation subsequently triggered a massive rally that sent Ethereum to its all-time high of $4,868.

Says Inmortal,

“History rhymes, sometimes.”

Looking closer at ETH, Inmortal predicts that Ethereum will continue to consolidate at current levels before sparking surges to $3,800 next month.

“Remember who you are, ETH.” 

At time of writing, ETH is trading for $2,479.

Turning to Ethereum rival Solana, the trader thinks that SOL will take a breather in the coming weeks before launching a rally to a new record high of $320 in July.

“$180 is the line on the sand, but it won’t take long to get through it.

After that, $320.” 

At time of writing, SOL is trading for $165.

Inmortal is also outlining Bitcoin’s (BTC) potential path to a new all-time high.

“$102,000 [to] $96,000 [to] $120,000”

At time of writing, Bitcoin is trading for $103,244.

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