Circle Raises $222 Million to Launch New ‘Arc’ Blockchain for Institutions

Circle Internet Group has raised $222 million through a token presale for its new Arc blockchain, marking a significant pivot for the USDC stablecoin issuer as it seeks to build an institutional-grade “operating system” for the global economy. The funding round, led by a $75 million anchor investment from a16z crypto, gives the Arc network a fully diluted valuation of $3 billion. The raise attracted a rare mix of legacy financial heavyweights and crypto-native firms, including BlackRock, Apollo Funds, the Intercontinental Exchange, SBI Group, and ARK Invest, signaling broad institutional interest in the project.

In an exclusive interview with CNBC, Circle CEO Jeremy Allaire described the launch as an evolution into a “broader internet platform company.” He compared the Arc infrastructure to mobile operating systems or cloud platforms, emphasizing that the network is designed to run more than just payments. According to Allaire, the blockchain is built to handle the complex contracts and governance systems that undergird financial relationships, specifically optimized for an era where AI agents—rather than humans—will increasingly manage operational and contractual tasks. To support this vision, Circle also unveiled a suite of tools to help developers create AI agents capable of executing autonomous transactions and payments.

The strategic shift comes as the crypto industry faces pressure to diversify revenue streams beyond the speculative cycles of digital assets. While USDC has become a dominant stablecoin, it currently relies on third-party networks like Ethereum and Solana. By launching Arc, Circle aims to own the infrastructure that powers its products, effectively playing defense against potential competition from traditional banks that may eventually issue their own dollar tokens. A16z crypto noted in a blog post that while USDC is a trusted digital dollar, existing internet infrastructure was built for individuals rather than the large-scale institutions Circle is now targeting.

The fundraising itself is a landmark event, as Circle is the first publicly listed company to conduct a token presale, a move historically associated with “initial coin offerings” or ICOs. While the 2017 ICO boom was marred by volatility and scams, the current regulatory environment under the Trump administration has shifted toward establishing frameworks for compliant on-chain capital formation. Allaire predicts this is part of a larger trend where every global company will eventually be tokenized. Under the Arc model, Circle will hold a 25% stake in the initial token supply, with 60% reserved for network participants and contributors to ensure a distributed, multi-stakeholder ecosystem.