The funding round included major investors like Andreessen Horowitz, BlackRock, and Standard Chartered. Circle also reported strong Q1 2026 growth, with USDC circulation rising to $77 billion and on-chain transaction volume reaching $21.5 trillion. Arc is a USDC-powered Layer-1 blockchain built for institutional finance, offering EVM compatibility, sub-second finality, and privacy features. Circle’s Arc Raises $222M Circle Internet Group raised $222 million for its newly launched institutional blockchain network, Arc, which values the project at a fully diluted valuation of $3 billion. The funding round was a huge milestone for the crypto sector, as Circle became the first publicly listed company to conduct a token presale for a blockchain network. The round was led by Andreessen Horowitz, which committed $75 million, while major financial institutions and investment firms including BlackRock, Intercontinental Exchange, ARK Invest, and Standard Chartered also participated in the raise. The announcement arrived alongside Circle’s first-quarter 2026 earnings report. Total revenue and reserve income climbed 20% year-over-year to $694 million, while USDC circulation expanded by 28% to reach $77 billion by the end of the quarter. On-chain USDC transaction volume surged to $21.5 trillion, which was a 263% increase compared to the same period last year. Adjusted EBITDA also rose by 24% to $151 million. Despite the strong operational growth, Circle’s net income from continuing operations declined 15% to $55 million. The drop was largely attributed to a sharp increase in operating expenses, which jumped 76% after the company’s public listing. Much of the increase came from stock-based compensation and related payroll tax obligations tied to the IPO process. Circle also revealed that its Payments Network reached an annualized transaction volume of $8.3 billion as of March 31, thanks to the growing adoption of blockchain-based payment infrastructure among businesses and institutions. Arc itself is designed as a public blockchain that is tailored specifically for institutional finance. The network uses USD Coin as its native gas token and offers features like sub-second transaction finality, EVM compatibility, and opt-in privacy functionality aimed at enterprise users. The launch is an important strategic shift for Circle, which historically depended on third-party blockchains like Ethereum and Solana for USDC settlement and distribution. By developing its own blockchain infrastructure, Circle could potentially reduce its reliance on external networks and distribution partners like Coinbase.
