Circle has raised $222 million for its new Arc blockchain project, attracting backing from major financial firms and crypto investors as the company pushes beyond its USDC stablecoin business.
Key Takeaways
- Circle raised $222 million in a private ARC token presale at a $3 billion valuation.
- Andreessen Horowitz led the round with a $75 million investment alongside BlackRock, Apollo, Bullish, and ICE.
- Arc is designed for institutional finance, tokenized assets, and AI powered payments using USDC.
- Circle aims to become a broader blockchain infrastructure company instead of relying mainly on stablecoin revenue.
What Happened?
Circle Internet Group announced a $222 million raise tied to the presale of ARC, the native token of its upcoming Arc blockchain network. The fundraising values the project at $3 billion on a fully diluted basis and marks one of the biggest institutional blockchain infrastructure bets of 2026.
The company disclosed the raise alongside its first quarter earnings report, which showed rising USDC adoption and strong transaction growth despite revenue slightly missing Wall Street expectations.
🚨 CIRCLE JUST RAISED $222M FOR ITS NEW ARC TOKEN
— Coin Bureau (@coinbureau) May 11, 2026
USDC’s issuer Circle has raised $222M in the presale of Arc, the native token of its new blockchain, raising valuation to $3 BILLION.
Backers include Andreessen Horowitz served, BlackRock, Apollo, the NYSE’s parent company ICE,… pic.twitter.com/t1N2podsge
Circle Pushes Beyond Stablecoins
The ARC token sale represents Circle’s most ambitious move yet beyond its core USDC stablecoin business. The company is positioning Arc as a public blockchain focused on regulated financial markets, tokenized assets, onchain settlements, and AI driven economic activity.
According to Circle, Arc is built to function as an “Economic Operating System” for the internet. The network will support stablecoin payments, financial contracts, treasury operations, and blockchain based applications designed for institutions.
Circle CEO Jeremy Allaire told CNBC that blockchain infrastructure is becoming as important as cloud computing and mobile operating systems.
Allaire said:
He added that Circle wants to become “a broader internet platform company” by building infrastructure that large institutions can help govern and operate.
Major Investors Back Arc
Andreessen Horowitz led the funding round with a $75 million investment. Other participants included BlackRock, Apollo Funds, Intercontinental Exchange, SBI Group, Janus Henderson Investors, Standard Chartered Ventures, General Catalyst, Marshall Wace, ARK Invest, IDG Capital, Haun Ventures, and Bullish.
The participation of both Wall Street firms and crypto focused investors highlights growing confidence in regulated blockchain infrastructure tied to stablecoins.
Circle sold 740 million ARC tokens during the presale at $0.30 each. The project’s tokenomics allocate:
- 25% of tokens to Circle for validator operations and staking.
- 60% to network users, developers, and contributors.
- 15% reserved for long term ecosystem growth.
Circle stated that ARC will serve as the coordination asset for the network, handling governance, validator security, and economic alignment across the protocol.
Arc Targets Institutional Finance and AI Payments
Unlike many existing blockchains that rely on volatile native gas tokens, Arc plans to use USDC for transaction fees. Circle believes this approach will offer institutions more predictable and dollar denominated operating costs.
The blockchain also supports Ethereum Virtual Machine compatibility, privacy controls for regulatory compliance, and sub second transaction finality.
Circle said Arc’s public testnet launched in October 2025 with participation from more than 100 institutions, including BlackRock, Visa, and HSBC. The company is targeting a mainnet beta launch in 2026.
Allaire also pointed to the growing role of artificial intelligence in financial systems. He said AI agents could eventually handle contracts, treasury management, and payments using blockchain infrastructure powered by USDC.
“We’re entering this era where software machines will power the economic system,” Allaire said.
Circle Reports Strong USDC Growth
Alongside the Arc announcement, Circle reported first quarter revenue of $694 million, up 20% year over year, although slightly below analyst estimates of $715 million.
Adjusted EBITDA rose 24% to $151 million, while earnings per share came in at 21 cents, beating expectations of 17 cents.
USDC circulation climbed 28% from a year earlier to $77 billion. Onchain transaction volume surged more than 260% year over year to $21.5 trillion.
Circle shares traded modestly higher in premarket trading following the announcement.
CoinLaw’s Takeaway
In my experience, this funding round shows that stablecoins are no longer viewed as just crypto trading tools. Big financial institutions are now treating blockchain infrastructure as a serious long term business opportunity. I found Circle’s strategy especially important because the company is trying to control more of the infrastructure layer instead of depending heavily on networks like Ethereum and Solana.
The involvement of firms like BlackRock, Apollo, and ICE also signals that institutional finance is becoming increasingly comfortable with tokenized systems and onchain markets. If Arc succeeds, Circle could evolve from a stablecoin issuer into one of the largest infrastructure providers in digital finance.
