Circle Internet Group has raised $222 million in a private presale of its ARC token, selling the token to a dozen institutional investors including Blackrock and A16z. The raise, disclosed May 11, gives the token a fully diluted valuation of $3 billion. ARC is the native token of Arc, a new layer-one blockchain built specifically for stablecoin transactions.
The ARC token and Arc chain
The ARC token isn't just another L1 coin. It's designed to fuel a blockchain purpose-built for stablecoins. Circle calls Arc a 'stablecoin-native' network — meaning the chain's economics, consensus, and fee structure are optimized for the high-frequency, low-cost transfers that stablecoins demand. That's a different pitch than general-purpose chains like Ethereum or Solana. The ARC token will be used for gas fees, staking, and governance on Arc.
A dozen institutional backers
Blackrock and A16z lead a list of roughly a dozen institutional participants in the presale. Circle didn't name every backer, but the presence of two of the biggest names in traditional and crypto finance signals strong institutional appetite for the project. The $3 billion fully diluted valuation puts ARC in the upper tier of token valuations at launch, though the actual circulating supply and price per token haven't been disclosed.
Circle's next move
Circle already runs USDC, the second-largest stablecoin by market cap. Launching its own L1 with a dedicated token gives the company a new revenue stream and more control over the stablecoin infrastructure. The timing makes sense: competition among stablecoin issuers is heating up, and regulators are paying closer attention. Circle hasn't announced a timeline for the Arc mainnet launch or a public sale of ARC. The presale proceeds will go toward development, ecosystem grants, and liquidity programs.
