Circle Launches $3B ARC Token, Challenging Coinbase in Institutional Crypto Race

Circle has taken a major step toward reshaping institutional crypto finance with the launch of its ARC token and the Arc blockchain, a new public network designed for institutional use cases such as payments, tokenized assets, and AI-driven commerce.

Circle’s $222M ARC Presale Valued Network at $3B

On May 11, Circle announced that a $222 million presale of its ARC token had been completed, with backing from leading investors including a16z Crypto. The presale valued the Arc network at $3 billion on a fully diluted basis.

The announcement coincided with Circle’s first-quarter earnings report, which showed:

• $694 million in total revenue and reserve income, a 20% increase year over year
• $77 billion in USDC in circulation, up 28% from the previous year
• $21.5 trillion in on-chain transaction volume, a 263% year-over-year surge

These figures underscore Circle’s dominance in the stablecoin market, where USDC has become a core infrastructure for trading, payments, and settlement.

Arc Blockchain: A New Frontier Beyond Stablecoins

While Circle’s core business has long revolved around issuing and managing USDC, the company is now expanding into a broader role as an infrastructure provider. The Arc blockchain is positioned as an “economic operating system” for the internet, enabling:

• Stablecoin-native transaction fees
• Deterministic sub-second finality
• Configurable privacy for institutional needs
• EVM compatibility for seamless integration

Circle CEO Jeremy Allaire emphasized the strategic vision behind Arc, stating:

“Circle’s first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack. With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a more programmable internet financial system.”

Investor Backing Signals Broad Ambition

The presale attracted participation from some of the most prominent names in finance and crypto, including:

• a16z Crypto ($75 million investment)
• BlackRock
• Apollo Funds
• Intercontinental Exchange (ICE)
• SBI Group
• Janus Henderson Investors
• Standard Chartered Ventures
• General Catalyst
• IDG Capital
• Haun Ventures
• Bullish

Rising Competition with Coinbase

Circle’s expansion into Arc comes as it competes more directly with Coinbase, its longtime USDC partner. Coinbase operates Base, a Layer 2 network positioned as a settlement layer for stablecoins, consumer payments, and agentic transactions.

With both companies vying for dominance in institutional crypto infrastructure, the rivalry could intensify, particularly as Circle’s Arc network matures and Coinbase continues to expand its ecosystem.

Circle’s move signals a shift from being primarily a stablecoin issuer to a broader provider of financial infrastructure, potentially reshaping the competitive landscape in institutional crypto finance.