Circle’s Arc whitepaper gains weight after $222M raise and earnings disclosure

Circle has turned its newly unveiled Arc blockchain project from a whitepaper concept into a heavily funded institutional initiative after disclosing a $222 million ARC token presale and outlining future Arc-related revenue ambitions in its latest earnings report.

The company released the Arc whitepaper alongside quarterly disclosures that revealed the ARC token sale valued the network at a fully diluted valuation of $3 billion.

Backers included BlackRock, Apollo, ICE, Standard Chartered Ventures, ARK Invest, a16z crypto, and Haun Ventures.

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The combined announcements offer the clearest picture yet of Circle’s long-term strategy as the USDC issuer pushes beyond stablecoins into blockchain infrastructure, AI-agent payments, and tokenized financial systems.

Arc positions itself as an “Economic OS”

According to the whitepaper, Arc aims to become “The Economic OS for the internet.” It positions the blockchain as infrastructure for payments, lending, tokenized assets, foreign exchange, and AI-driven financial services.

Circle also confirmed that ARC will serve as the network’s native token. The token will power staking, governance, validator incentives, and fee distribution across the ecosystem.

The project plans to launch with an initial supply of 10 billion ARC tokens. Circle allocated:

• 60% to the ecosystem,

• 25% to Circle,

• and 15% to long-term reserves.

Arc’s tokenomics also include a burn mechanism tied to network fees and a relatively low annual inflation target of roughly 2–3%, which declines over time.

Unlike many existing Layer-1 networks, Arc plans to support stablecoin-denominated fees to provide more predictable transaction costs for institutions and enterprises.

Circle ties Arc to AI-agent infrastructure

Circle’s earnings report revealed that Arc is becoming central to the company’s AI strategy.

CEO Jeremy Allaire described the project as part of the “rapid convergence of AI platforms and economic operating systems into a new internet stack.”

The company also introduced:

• Agent Wallets,
• an Agent Marketplace,
• and AI-focused payment tooling tied to USDC infrastructure.

Arc appears designed to serve as the coordination and settlement layer for that broader ecosystem.

Circle further disclosed that its earnings guidance does not yet account for “future Arc revenue streams,” signaling that the blockchain could become a meaningful business line beyond USDC issuance.

Circle expands beyond stablecoins

The Arc push comes as Circle’s core stablecoin business continues to grow rapidly.

Revenue rose 20% to $694 million, though net income fell 15% to $55 million as Circle increased spending on infrastructure, product development, and compensation.

The whitepaper also showed that Arc’s testnet had already processed more than 244 million transactions as of 5 May, with a mainnet launch expected in summer 2026.

Still, the project launches with several centralized features. Circle will initially control validator onboarding and network governance before transitioning toward a broader proof-of-stake model.

Final Summary

• Circle disclosed a $222 million ARC token raise at a $3 billion valuation alongside the release of Arc’s whitepaper.
• The company positioned Arc as infrastructure for AI-agent payments, tokenized assets, and future blockchain-based financial services.