Circle Raises $222M for Arc Blockchain at $3B Fully Diluted Valuation
Circle has outlined a major push beyond stablecoins, revealing a $222 million presale of its ARC token and publishing a whitepaper for its new Arc blockchain initiative. The token sale implies a $3 billion fully diluted valuation for the network, according to the company's latest quarterly disclosures.
Investors in the presale included BlackRock, Apollo, ICE, Standard Chartered Ventures, ARK Invest, a16z crypto, and Haun Ventures.
Arc is framed as an "Economic OS" for the internet. Circle says the network is designed to support payments, lending, tokenized assets, foreign exchange, and AI-driven financial services. ARC will be the chain's native token, used for staking, governance, validator incentives, and fee distribution.
Circle plans an initial supply of 10 billion ARC tokens, allocated 60% to the ecosystem, 25% to Circle, and 15% to long-term reserves. The token model also includes a fee-linked burn mechanism and an annual inflation target of about 2–3% that declines over time. Arc also aims to allow stablecoin-denominated fees, targeting more predictable transaction costs for institutional and enterprise users.
In its earnings report, CEO Jeremy Allaire linked Arc to Circle's AI ambitions, describing a "rapid convergence of AI platforms and economic operating systems into a new internet stack." Circle also introduced Agent Wallets, an Agent Marketplace, and AI-focused payment tools connected to USDC infrastructure, with Arc positioned as a coordination and settlement layer. The company noted its guidance does not yet reflect potential "future Arc revenue streams."
Circle's core stablecoin business continued to expand. Revenue rose 20% to $694 million, while net income declined 15% to $55 million as the company increased spending on infrastructure, product development, and compensation.
The Arc whitepaper said the testnet had processed more than 244 million transactions as of 5 May. Circle expects a mainnet launch in summer 2026. The project will begin with centralized elements, with Circle initially controlling validator onboarding and governance before transitioning toward a broader proof-of-stake model.
Summary: Circle disclosed a $222 million ARC token raise at a $3 billion fully diluted valuation alongside Arc's whitepaper release, positioning the blockchain as infrastructure for AI-agent payments, tokenized assets, and future on-chain financial services.
