Circle launches Arc blockchain at $3B valuation

Circle has launched the Arc blockchain after raising $222 million in a token presale backed by BlackRock and a16z.

Circle Internet Group raised $222 million in the presale of ARC, the native token of its new Arc blockchain, giving the network a fully diluted valuation of $3 billion. Andreessen Horowitz led the investment with a $75 million commitment. BlackRock, Apollo Funds, a16z crypto, ARK Invest, Haun Ventures, Intercontinental Exchange, and Standard Chartered Ventures are among the roughly dozen backers who participated.

Circle is the first publicly listed company to conduct a token presale in a compliant structure of this kind. The announcement arrived alongside the company’s first quarter 2026 earnings report. Total revenue and reserve income reached $694 million, up 20% year over year, as USDC in circulation grew 28% to $77 billion.

What is Arc and why does it matter

Arc is a public blockchain built for institutional finance. Circle CEO Jeremy Allaire described it as an operating system for economic activity that goes beyond stablecoins and payments.

“We’re becoming a broader internet platform company,” Allaire told CNBC. “We’re entering the operating system business and we’re doing it by building this multi-stakeholder distributed model with a token, with a distributed network.”

Arc uses USDC as its native gas token, with sub-second finality, opt-in privacy, and EVM compatibility. Circle’s Arc testnet has already drawn more than 100 organisations, including State Street, Deutsche Bank, BlackRock, Goldman Sachs, and Visa. The mainnet beta is targeted for later in 2026.

Circle’s strategic shift and market reaction

As a 25% stakeholder in Arc’s initial supply of 10 billion tokens, Circle can participate in operating validator infrastructure, generating new fee revenue and earning staking income. The remaining 60% of tokens go to participants who build on, use, and contribute to the network.

The presale is as much about defense as growth. With stablecoin legislation advancing, some investors fear banks and fintechs could launch competing dollar tokens, removing the need for a third-party issuer like Circle. Arc’s quantum-resistant architecture, confirmed ahead of mainnet, is also positioned as a baseline requirement for institutional adoption.

Circle shares jumped to $121.55 in pre-market trading after the announcement before easing to $118.65. Earnings per share of 21 cents beat analyst estimates of 17 cents, while adjusted EBITDA rose 24% to $151 million.