Circle eyes Arc token, plans proof-of-stake shift

Circle is exploring a native token for Arc Network and plans to transition the USDC-backed layer-1 blockchain to a proof-of-stake consensus over time. CEO Jeremy Allaire announced the update at a company event in Seoul and said the firm is targeting a mainnet beta in 2026. A public testnet launched in October 2025.

At the Seoul event Allaire told attendees the token would “help provide mechanisms for governance, incentives, economic alignment, and to ultimately move it into a proof-of-stake system over time.” He added the company expects to share further details soon and reiterated hopes to reach mainnet in the near term.

Arc is a layer-1 blockchain developed by USDC issuer Circle and described by the company as an Economic Operating System for stablecoin-native applications. The network is compatible with the Ethereum Virtual Machine and offers deterministic finality, predictable fees priced in USDC and other stablecoins, privacy and compliance controls, and connections to traditional financial systems.

Circle’s roadmap calls for expanding validator participation and creating community governance frameworks as Arc shifts from a company-led project toward a distributed, community-driven network. The planned native token would be used for governance and economic incentives intended to support the transition to proof-of-stake.

Circle named partners involved with the Arc testnet, including BlackRock, Visa, Goldman Sachs and Amazon Web Services. Allaire referenced collaboration with major financial companies, global banks, exchanges and leading payments and technology firms. Circle’s shares rose about 10% following the announcement, trading above $108.

Arc’s technical plans include post-quantum signature support at mainnet launch and a roadmap to extend quantum-resistant measures across wallets, validators and infrastructure. The company framed the work as preparation to protect institutional digital assets from potential future cryptographic threats.

Circle previously raised the possibility of a native token during its fourth-quarter 2025 earnings call. Tuesday’s remarks add detail as the project moves toward mainnet testing while the firm develops governance and security features.