Arc (ARC)

Stablecoin Finance

Arc is purpose-built for stablecoin finance, focusing on payments, foreign exchange (FX), lending, and capital markets. It supports stablecoin-native applications that need settlement certainty and currency stability.

Institutional Use

Arc offers configurable privacy features that let institutions keep transaction data confidential while allowing audit and compliance access. It supports payroll, treasury management, tokenized assets, trading, and lending use cases requiring privacy.

Real-World Asset Tokenization

Arc enables tokenization of real-world credit assets like invoices and trade finance instruments, allowing these to be used as programmable collateral for lending and borrowing onchain.

Developer and Ecosystem Integration

Arc is an EVM-compatible Layer-1 blockchain with sub-second finality and stablecoin-native fees, designed as a base layer for developers building financial applications rather than general consumer crypto apps.

Governance and Coordination

The ARC token helps govern the network, align participants, and support broader platform utility and participation as the network grows.

Pros

• Arc is an EVM-compatible Layer-1 blockchain designed specifically for stablecoin finance, backed by Circle, the issuer of USDC.
• It offers stablecoin-native gas fees, meaning transaction fees are predictable and paid in stablecoins like USDC, avoiding volatile crypto fees.
• Transactions have instant, deterministic finality, settling in under one second and cannot be reversed, which is important for business and financial operations.
• Arc includes opt-in privacy features that allow businesses to shield transaction amounts while keeping addresses visible, supporting regulatory compliance.
• The blockchain is designed to interoperate with other ecosystems like Ethereum and Solana, enabling seamless liquidity routing and collaboration.
• It supports a modular privacy system with confidential transfers and uses Trusted Execution Environments for private computation.
• Arc is built to handle enterprise-grade demands with predictable fees, compliance-ready privacy, and direct integration with Circle’s full-stack platform.
• The ARC token will help govern the network, align participants, and support long-term success through staking and rewards.
• The project is actively in testnet phase with potential for rewarding early participants.

Cons

• As of early 2026, there is no official confirmation of a native token launch, which may create uncertainty for some users.
• The ARC token has experienced price volatility and underperformance compared to other cryptocurrencies recently.
• The project is relatively new and still in testnet phase, so some features and performance aspects may change before mainnet launch.
• Circle’s expansion with Arc could create competition with established crypto platforms, which might affect market dynamics.
• Some users may find the privacy features complex due to the need for selective disclosure and cryptographic keys for auditability.

Founders of Arc

• George Fox: Co-founder and COO of Arc. He has a background in military operations and leadership, and technical expertise in AI and decentralized technologies. He co-founded Arc in March 2022 with TJ Dunham.

• TJ Dunham: Co-founder and CEO of Arc. He focuses on building secure AI infrastructure and leads the company’s vision and strategic direction.

• Elroy Cheo: Co-founder involved in building Arc as a Web3 community platform, especially focused on collaboration within the global Asian diaspora.

• Kiat Lim: Co-founder alongside Elroy Cheo, contributing to the development of Arc’s community and access features.

• Jeremy Allaire: Founder associated with Arc’s blockchain development and CEO of Circle, which backs Arc’s Layer 1 blockchain project.

These individuals together form the founding team behind Arc, each bringing unique expertise in technology, leadership, and blockchain innovation.

Major Investors

Arc's token presale raised $222 million at a $3 billion valuation. Key investors include Andreessen Horowitz (a16z crypto) as the lead with a $75 million investment, BlackRock, Apollo Funds, and the Intercontinental Exchange (parent company of the New York Stock Exchange).

Additional Institutional Investors

Other participants are SBI Group, Janus Henderson Investors, Standard Chartered Ventures, General Catalyst, Marshall Wace, ARK Invest, IDG Capital, Haun Ventures, and Bullish (a crypto exchange and CoinDesk owner).

Strategic Importance

These investors reflect strong institutional interest in Arc as a public blockchain designed for institutional finance, aiming to support global financial infrastructure and regulated onchain financial systems.

ARC Shariah Status

Arc is considered halal according to Shariah analysis because it is a decentralized multi-market aggregator that supports blockchain technology without involving interest (riba) or prohibited elements.

General Crypto Halal Considerations

Cryptocurrency can be halal if it involves real economic activity, avoids interest, and excessive uncertainty. Many scholars permit spot trading of major coins like Bitcoin and Ethereum, while speculative or interest-based activities are generally not halal.

Scholarly Opinions

There is no unanimous agreement; some scholars approve certain cryptocurrencies as halal, while others remain cautious due to speculation. The halal status depends on the project's fundamentals and compliance with Islamic finance principles.

Summary

Yes, Arc is halal because it aligns with Shariah principles by providing a decentralized platform without interest-based mechanisms or excessive speculation.