Circle is Exploring a Native Token for its Arc Blockchain: What We Know

Circle is considering launching a native token for its Arc blockchain. The prospect of a native Arc token was confirmed by Chief Executive Jeremy Allaire during the company’s Q4 2025 earnings call on Feb. 25, 2026.

Allaire said Circle is “continuing to explore” how a token could support incentives, governance, security, and utility on Arc. He added that the company is developing a clear understanding of how such a token would function. However, no name, ticker, tokenomics, launch date, airdrop, or distribution plan has been disclosed.

While the possibility is increasingly likely, the proposal remains under internal review.

What Is Arc Blockchain and Why Does It Matter for Stablecoins?

Arc is an open, EVM-compatible Layer-1 blockchain built by Circle, the issuer of USDC. The network is designed for stablecoin-native finance, enterprise payments, tokenization, and high-performance applications such as automated machine-to-machine payments.

Circle announced Arc in August 2025, with the public testnet launching on Oct. 28, 2025. As of writing, the testnet has processed more than 166 million transactions, averaging about 2.3 million daily transactions with near-100 % uptime. More than 100 institutional participants, including banks, asset managers, and technology firms, have tested the network.

The mainnet is scheduled for release in 2026 and will initially operate under a Proof-of-Authority (PoA) consensus model run by selected financial infrastructure partners. Circle has stated that the network may transition to a more decentralized model over time.

Arc’s core technical features include:

• Sub-second deterministic finality, averaging about 0.5 seconds
• USDC as the current native gas token, providing predictable dollar-denominated fees
• Institutional-grade privacy controls
• Foreign exchange liquidity tools and atomic swaps
• Interoperability through Circle’s Cross-Chain Transfer Protocol (CCTP)
• Integrations with Circle Mint, Gateway, and the Circle Payments Network

Overall, Arc is designed specifically for regulated, high-volume stablecoin use rather than general-purpose decentralized applications.

Why Is Circle Considering a Native Token for Arc?

During the Q4 2025 earnings call, Allaire said:

“We’re continuing to explore the Arc token. It’s, I think, a very good exploration. We’re getting a very good understanding of how a token can play a key role in providing stakeholder incentives, governance, security, utility, and other things on the Arc network. And so that exploration continues. We aren’t communicating about any specific timeline or other because we’re still in that exploration.”

Circle previously referenced the idea in its Q3 2025 earnings release, stating it was exploring the possibility of launching a native token on Arc to support network participation and align stakeholder interests.

Based on public statements, the intended functions of a native token could include Stakeholder incentives and ecosystem participation, On-chain governance, Security participation if Arc transitions from PoA to a Delegated Proof-of-Stake or similar consensus model, and General utility across network services. 

At present, USDC serves as the gas token. Any native token would not replace USDC for transaction fees in the current design. Instead, it would likely supplement the network’s economic model as governance and validator participation evolve.

Circle’s Q4 2025 written earnings release did not mention the token in its main highlights. The only written reference appears in risk disclosures, noting that any potential launch of a native token would introduce additional risks.

How Would a Native Token Fit into Arc’s Economic Model?

Arc currently uses USDC as its native gas token. This structure supports predictable transaction fees denominated in U.S. dollars, a design choice that aligns with enterprise payment use cases.

If launched, a native token could serve different roles from USDC. In many Layer-1 networks, native tokens secure consensus, support validator incentives, and enable governance voting. If Arc transitions away from PoA toward a more decentralized consensus system, a token could be used for staking and validator selection.

Such a model would introduce standard blockchain risks, including price volatility, regulatory scrutiny, and security considerations. Circle’s SEC filings note these uncertainties as forward-looking risks.

Kevin Lehtiniitty, CEO of Borderless, previously stated that adding new “stablecoin chains” risks recreating fragmented payment systems under new branding. He argued that interoperability and connectivity move open finance forward more effectively than launching new tokens or chains. His comments highlight an ongoing industry debate about whether new infrastructure improves efficiency or increases fragmentation.

What Risks and Regulatory Considerations Are Involved?

Circle emphasizes regulatory compliance and institutional trust. Arc’s initial PoA model, its focus on audited infrastructure, and its alignment with potential U.S. stablecoin legislation reflect this approach.

Launching a native token would likely attract regulatory review, especially in the United States. Token classification, whether as a utility token, governance token, or security, would influence compliance requirements.

Circle’s public filings caution that any token launch could create additional operational, regulatory, and market risks. No commitment has been made to proceed.

What Comes Next for Arc and Its Potential Token?

The next confirmed milestone for Arc is its 2026 mainnet launch. Circle’s official communications have focused on infrastructure readiness, institutional onboarding, and stablecoin payment performance.

Any formal decision regarding a native token is expected to be disclosed on future earnings calls, in regulatory filings, or through official Circle and Arc channels. At present, the Arc token remains a concept under evaluation rather than an active product.

In the meantime, Arc’s development remains focused on building a stablecoin-native Layer-1 network with institutional participation and predictable fee structures. The proposed native token is under review as a potential mechanism for governance, incentives, and security, but no launch decision has been made. For now, Arc’s mainnet rollout in 2026 is the company’s next defined step.

Sources:

• Investing: Circle Earnings Call Full Transcript
• TheDefiant: Circle Reveals Plans for Native Arc Token
• Circle Blog: Arc Blockchain Announcement