Circle Launches New Blockchain for Stablecoins, Other Assets

Stablecoin issuer Circle officially launched Arc blockchain, which will support the trading of stablecoins, tokenized equities, and other assets.

The blockchain will also support perpetuals, lending protocols, and social trading apps, Jeremy Allaire, CEO of Circle, said in a press briefing. Tokenized securities by the Depository Trust & Clearing Corporation will also be issued on Arc blockchain, he said. BlackRock, DTCC, Visa and Mastercard are among companies that will validate transactions on the blockchain.

Circle has been diversifying its revenue sources beyond interest income from stablecoin reserves. Circle earlier pre-sold $222 million of the Arc tokens, which will give holders a role in governance of the blockchain. This month, it agreed to buy Tazapay, a Singapore-based payments firm, for $400 million in stock, which it said will drive distribution of its USDC stablecoins.

Circle’s Arc blockchain will compete with existing popular blockchains like ethereum and solana, as well as blockchains launched by companies including Robinhood, Coinbase and Stripe-backed Tempo.