Photo: Lionel Ng
Circle raises $222 million from BlackRock and Wall Street giants for Arc blockchain
The launch of Arc comes as crypto firms increasingly seek sustainable business models beyond trading-related revenue.
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Add us on Google by Vivian Nguyen May. 11, 2026Circle Internet Group, the publicly listed issuer of the USDC stablecoin, pulled in $222 million through a presale of the native token for its new Arc blockchain, giving the network a fully diluted valuation of $3 billion, CNBC reported Monday.
Andreessen Horowitz led the round with a $75 million commitment. Other participants include BlackRock, Apollo Funds, Intercontinental Exchange, the owner of the New York Stock Exchange, Standard Chartered Ventures, Janus Henderson, ARK Invest, and about half a dozen more.
Circle is the first publicly listed company to conduct a token presale, an early sale of digital tokens before a blockchain goes live. CEO Jeremy Allaire said Arc represents Circle’s push beyond stablecoins into blockchain infrastructure and internet-scale financial software.
What Arc is and how it works
Arc is built for institutional finance, with compliance and speed at its core. Its public testnet, which launched on October 28, 2025, processed over 150 million transactions in its first 90 days. Average settlement time: half a second.
Of Arc’s initial supply of 10 billion tokens, 60% is earmarked for participants who build on, use, and contribute to the network. Circle retains 25%, which lets the company run validator infrastructure, earn staking income, and generate fee revenue, a new business line entirely separate from the reserve income that currently accounts for roughly 96% of its top line. The remaining 15% goes to a long-term reserve.
Regulatory context
The GENIUS Act was signed into law last year, and the STABLE Act is set for an initial vote in the Senate Banking Committee this week. Regulatory clarity legitimizes Circle’s core product and opens the door for traditional banks to launch competing tokens.
A16z crypto wrote in a blog post that while USDC has become the trusted digital dollar for institutions seeking speed without volatility, “the internet infrastructure which USDC runs on today wasn’t built with big institutions in mind. It was built for individuals and crypto enthusiasts. That’s where Arc comes in.”
Circle’s history and revenue problem
Founded in 2013, Circle spent years pivoting between consumer payments, crypto trading, and stablecoin issuance before finding its footing with USDC. Its IPO in June 2025 was notably undersubscribed, raising approximately $1.15 billion.
Reserve income generated $2.636 billion of the company’s $2.747 billion in FY2025 revenue. By moving into blockchain infrastructure, validator fees, and developer ecosystem revenue, Circle is trying to build recurring income streams beyond that single source.
The company also unveiled tools for developers building AI agents that can manage transactions and make payments using USDC, a bet that the intersection of artificial intelligence and on-chain finance will shape the next decade of financial services.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
