Circle Raises $222M for Arc Blockchain in Major Institutional Presale

Circle has raised $222 million through a token presale for Arc, its public Layer-1 blockchain focused on stablecoin payments and tokenized finance. The transaction valued the project at approximately $3 billion and marked one of the largest blockchain infrastructure financings announced this year.

Andreessen Horowitz led the presale with a reported $75 million investment. Other participants included BlackRock, Apollo, Intercontinental Exchange, SBI Group, Janus Henderson Investors, Standard Chartered Ventures, General Catalyst, Marshall Wace, ARK Invest, IDG Capital, Haun Ventures, and Bullish.

The Arc blockchain presale also stands out because Circle structured the transaction around ecosystem tokens. The company did not use a traditional equity funding round.

Several reports described the transaction as the first token presale conducted by a publicly listed crypto company, highlighting how digital asset firms are experimenting with alternative capital formation models.

Arc Expands Circle Beyond Stablecoin Issuance

Circle is primarily known as the issuer of the USDC stablecoin, one of the largest dollar-backed digital assets. Arc represents a broader effort by the company to move beyond stablecoin issuance and establish a position in the blockchain infrastructure layer itself.

The network is designed as a public Layer-1 blockchain focused on financial applications, payments, and tokenized assets. Many blockchains rely on volatile native crypto assets for transaction fees. Arc instead uses USDC as its gas token, tying transaction costs more directly to the U.S. dollar.

Circle’s Arc blockchain is compatible with the Ethereum Virtual Machine, supporting Ethereum-based smart contracts and developer tools. Circle has additionally promoted sub-second transaction finality as a core feature aimed at settlement efficiency and payment use cases.

Arc enters a growing category of blockchain networks targeting institutional users. At the same time, the network maintains public blockchain accessibility.

Financial firms have increasingly explored blockchain infrastructure for areas such as tokenized securities, collateral management, payments, and cross-border settlement.

Public Testnet Is Already Live

Arc has already entered its testing phase ahead of a planned mainnet launch in 2026. Circle launched the blockchain’s public testnet in October 2025 with participation from more than 100 organizations spanning fintech, digital assets, and traditional financial services.

According to Circle, it used the testnet to evaluate applications connected to lending, foreign exchange, capital markets, and global settlement. The company has framed the network as infrastructure capable of supporting high-throughput financial activity while remaining compatible with existing blockchain development tools.

The public testnet moved Arc beyond the conceptual stage. It also shifted the project into active ecosystem development ahead of mainnet deployment.

While institutional backing can provide early credibility, long-term adoption will likely depend on developer participation, network activity, and whether financial firms choose to deploy applications directly on the chain after launch.

Competition in the sector also remains significant. Arc enters a market already populated by Ethereum-focused scaling networks, tokenization platforms, and institution-oriented blockchain ecosystems competing to become infrastructure providers for digital finance.

>>> Read more: Drift Hack Lawsuit Targets Circle Over USDC Transfers

Circle Reports Stronger Quarterly Results

The token presale announcement arrived alongside Circle’s Q1 2026 earnings release. The company reported revenue and reserve income of $694 million, representing 20% year-over-year growth, while adjusted EBITDA increased 24% to $151 million.

Although revenue came in below analyst expectations of roughly $715 million, the results still reflected continued growth in USDC activity and reserve-related income. Circle reported $77 billion in USDC circulation at the end of the quarter alongside $21.5 trillion in quarterly onchain transaction volume.

The Arc blockchain initiative gives Circle direct exposure to infrastructure tied to stablecoins and tokenized finance. That expands its strategy beyond revenue generated primarily through USDC issuance.

That strategy could become increasingly important as financial institutions continue exploring blockchain-based settlement systems and programmable digital assets.

For now, the $222 million Arc token presale signals continued institutional appetite for blockchain infrastructure projects tied to stablecoins and regulated financial applications. The next phase for Circle will likely focus on converting early investor support and testnet participation into sustained network activity ahead of Arc’s planned mainnet rollout in 2026.