USDC issuer Circle raises $222M in Arc token presale valued at $3B

Circle Internet Financial, the New York Stock Exchange-listed issuer of the USDC stablecoin, raised $222 million in a private placement of its ARC tokens, valuing the Arc blockchain network at $3 billion on a fully diluted basis. The presale, announced alongside Circle’s Q1 2026 financial results, was led by a16z crypto and included investors such as BlackRock, Apollo Funds, ARK Invest, and Standard Chartered Ventures. Circle sold 740 million ARC tokens at $0.30 each under a US Securities Act exemption, marking a strategic shift toward blockchain infrastructure beyond stablecoin operations. The ARC token serves as the native asset for Circle’s layer-1 blockchain, dubbed the ‘Economic OS,’ designed to facilitate stablecoin finance and tokenized markets. The network employs a hybrid consensus model, transitioning from proof-of-authority to proof-of-stake, with ARC tokens allocated across three categories: 60% for ecosystem growth, 25% for Circle’s development and governance, and 15% as a long-term reserve. The whitepaper released alongside the presale outlines ARC’s role in governance, security, and network operations, positioning it as a coordination asset for programmable financial markets. Circle’s Q1 2026 revenue reached $694 million, a 20% increase from the prior year, driven by USDC circulation growth to $77 billion and a 263% surge in onchain transaction volume to $21.5 trillion. However, net income declined 15% to $55 million due to rising costs, including a 76% jump in operating expenses to $242 million, primarily from post-IPO stock-based compensation. The financial results reflect Circle’s expanding operations as it integrates Arc into its broader strategy of building a settlement layer for stablecoin and tokenized asset markets. The ARC presale underscores Circle’s ambition to transition from stablecoin dominance to blockchain infrastructure, leveraging its existing ecosystem of $77 billion in USDC circulation. The token’s design emphasizes stability and flexibility, with a fixed supply of 10 billion tokens, ensuring long-term resilience amid market volatility. The involvement of institutional investors like BlackRock signals growing confidence in Circle’s vision for a tokenized financial future, aligning with broader trends in decentralized finance and blockchain adoption.