Arc Blockchain is a next-generation layer one blockchain designed as a stablecoin-native execution environment, where stablecoins, predictable fees, and real-time settlement drive the entire execution environment.

Arc belongs to the broader Arc ecosystem, an environment optimized for fast, stablecoin-native activity. Unlike traditional L1s that retrofit stablecoin support onto volatile gas assets and variable latency, Arc adopts a fundamentally different architecture: USDC as the native gas token, sub-second finality, and an EVM-compatible blockchain that prioritizes determinism over probabilistic confirmation. Arc is currently in its public testnet phase, with mainnet targeted for 2026.

What Is Arc Blockchain?

Arc is a stablecoin blockchain designed for real-world settlement, not just theoretical throughput. Most layer-1s rely on volatile native tokens for transaction fees, resulting in unpredictable UX and unstable cost structures. Arc rejects this default. Instead, it integrates a stablecoin at the protocol level and aligns block production, gas mechanics, and fee markets around stable, fiat-denominated computation.

This design choice positions Arc as an economic OS for the internet, where every part of the financial stack exhibits deterministic behaviour in terms of fees, latency, settlement, and finality. The architecture focuses on:

• Predictable gas pricing, because costs are denominated in a stablecoin

• Consistent block intervals, reducing execution uncertainty

• Real-time confirmation, supporting consumer-tier UX

• EVM compatibility, lowering migration friction for existing Ethereum apps

One of Arc’s most defining features is using USDC as the native asset for gas. It eliminates the volatility inherent in crypto-native fee markets.

Why USDC for Gas?

Most blockchains use a volatile native token for fees. This introduces unpredictable costs, especially for applications with financial or consumer-grade UX requirements. Arc solves this by making gas payments in USDC, a stablecoin widely used as a global unit in the broader economy. Here are some key advantages:

• Costs remain consistent over time, enabling accurate financial planning.

• Users pay in a currency they understand, reducing cognitive overhead.

• Apps can denominate operations in fiat-equivalent units.

• Useful for enterprise and cross-border transactions.

Implications For Developers

These properties lead to a simplified and more reliable engineering environment. Developers can utilize deterministic cost models to accurately forecast expenses associated with contract execution, which is particularly important for use cases such as subscription payments, streaming services, or automated financial flows.

Because gas is paid in a stablecoin, there is no need to stabilise gas exposure through complex treasury management or hedging strategies. At the same time, the user experience becomes more intuitive, since users pay for gas with the same stablecoin they use for their transactions, which reduces friction at the wallet level and makes on-chain activity easier to understand.

Implications for Stablecoin Adoption

By treating stablecoins as core protocol logic, Arc becomes a natural home for:

• consumer payments

• enterprise remittances

• automated settlements

• stablecoin-denominated DeFi

Arc’s fee behavior is engineered to feel closer to a payment rail than a traditional crypto network.

Block Production and Sub Second Finality on Arc

Arc targets sub-second deterministic finality based on current benchmarks in its public testnet.

Finality under a second means the block pipeline is designed to:

• confirm transactions within the UX horizon of real-time apps

• minimize uncertainty around state transitions

• reduce the need for off-chain sequencing or optimistic settlement layers

• support high-frequency or latency-sensitive protocols

Benefits of sub-second confirmation

• Responsive interfaces for consumer applications

• Reliable settlement windows for financial operations

• Lower risk during multi-step transaction flows

• Smooth integration into real-world payment and settlement systems

Arc focuses on predictable block timing and deterministic settlement, rather than raw TPS metrics.