Circle has raised $222 million in a presale of ARC tokens, valuing the network at $3 billion on a fully diluted basis. The round was led by a16z Crypto with a $75 million investment, and included BlackRock, Apollo Funds, Intercontinental Exchange, SBI Group, Janus Henderson Investors, Standard Chartered Ventures, General Catalyst, IDG Capital, Haun Ventures, and Bullish. The funding comes alongside the launch of Arc, a new EVM-compatible blockchain designed for institutional finance.
Arc: a blockchain built for banks and AI
Arc is an EVM-compatible blockchain with stablecoin-native fees, sub-second finality, and configurable privacy. Circle says it's built for payments, tokenized assets, foreign exchange, capital markets, and AI-driven commerce. The network positions Circle as a direct infrastructure provider, putting it in competition with Coinbase, which operates the Base Layer 2 network.
USDC growth and revenue keep climbing
Circle's Q1 2025 revenue and reserve income hit $694 million, up 20% year-over-year. USDC in circulation rose 28% to $77 billion. On-chain transaction volume reached $21.5 trillion, up 263% year-over-year. CEO Jeremy Allaire said the quarter reflects the convergence of AI platforms and on-chain money.
Circle's AI play: Agent Stack
Circle also launched Agent Stack, a set of tools for AI-native economic activity. The product is part of a broader push to make stablecoins and blockchain infrastructure accessible to autonomous agents and AI systems.
Analysts raise price target on Circle
Clear Street analysts raised their price target on Circle from $152 to $157, citing Arc, Agent Stack, Circle Payments Network, and regulatory momentum. The new target suggests confidence in Circle's expanding role beyond stablecoin issuance into blockchain infrastructure and AI.
Arc's mainnet launch timeline hasn't been announced yet, but the presale and investor lineup signal serious institutional backing. For now, the market will watch how Circle's infrastructure bets play out against Coinbase's Base and other L2s.
