Circle raised $222 million through a private sale of 740 million ARC tokens at $0.30 each. That’s according to the company’s first-quarter 2026 financial results. The round values Arc at $3 billion on a fully diluted basis. Arc is Circle’s layer-1 blockchain network for stablecoin finance.
a16z crypto led the presale. BlackRock backed it. So did Apollo Funds, ARK Invest, and Standard Chartered Ventures. That’s institutional interest in stablecoin infrastructure.
Circle first introduced Arc in 2025. It’s an open blockchain built specifically for stablecoin payments and settlement. According to Circle’s press release, Arc is designed as an “Economic OS” for stablecoin-based finance and tokenized markets. The ARC token serves as the network’s native coordination asset. It enables governance, security, and operational functions across the platform.
Arc’s architecture takes a phased approach to decentralization. The network will start with permissioned validators. Then it’ll transition toward proof-of-stake, according to the Arc whitepaper. This hybrid model aims to balance security and compliance early on. Over time, it’ll move toward more decentralized validation.
The token has a fixed initial supply of 10 billion ARC tokens. Roughly 60% is allocated for ecosystem growth. Another 25% for Circle’s development and staking needs. And 15% held as a long-term reserve, according to the whitepaper. Circle plans to distribute tokens broadly. But it’s maintaining significant control over network development.
The fundraise underscores Circle’s strategy. They’re expanding beyond stablecoin issuance into core blockchain infrastructure. Arc could deepen Circle’s position in programmable finance. It could compete more directly with settlement-focused blockchains serving payments and real-world asset tokenization.
Circle’s latest financials show why this expansion matters. USDC circulation climbed 28% year over year to $77 billion. Onchain transaction volume surged 263% to $21.5 trillion. That’s according to the company’s Q1 results. Revenue and reserve income increased 20% to $694 million. Net income fell 15% to $55 million. Operating costs jumped 76%. Adjusted EBITDA still rose 24% to $151 million. Circle shares gained in premarket trading following the announcement.
The Arc presale attracted a diverse investor base. Traditional finance. Crypto-native funds. Asset managers. Other participants included Bullish, General Catalyst, Haun Ventures, Intercontinental Exchange, IDG Capital, Janus Henderson, Marshall Wace, and SBI Group. The breadth of backing suggests something. Institutional players see infrastructure tied to stablecoin settlement as a strategic bet. It’s a bet on the next phase of onchain finance.
