Circle's Arc: The Economic Operating System for the Internet

Stablecoins are transforming global financial infrastructure by replacing legacy correspondent banking systems with efficient, on-chain settlement. Rachel Mayer, a former J.P. Morgan FX trader and current leader at Circle, details the development of Arc, a layer-one blockchain designed to serve as an economic operating system for the internet. Arc addresses critical institutional pain points by utilizing stablecoins as a native gas token, offering opt-in privacy for regulatory compliance, and maintaining interoperability through the Cross-Chain Transfer Protocol. By aggregating liquidity from local stablecoins—such as the Brazilian Real and Japanese Yen—the platform enables 24/7 cross-border payments and capital market activities that bypass traditional settlement delays. This infrastructure shift moves beyond simple token issuance, providing a robust, compliant environment for agents, developers, and global financial institutions to conduct value-based transactions with sub-second finality.