Circle CEO Jeremy Allaire introduced Arc, a new blockchain network branded as an "economic OS for the internet," during CNBC's Future Investment Initiative 2025 in Riyadh. Arc targets scalable, enterprise-grade finance with USDC at its core, promising implications for Middle Eastern financial markets and regulatory advancements.
Arc: An Economic OS for the Internet
Circle CEO Jeremy Allaire has introduced Arc, a new blockchain network branded as an "economic OS for the internet." It aims to offer scalable on-chain finance applications. The testnet for Arc went live on October 28, 2025.
Jeremy Allaire emphasized Arc's design for core on-chain finance, featuring scalability, predictable costs, and privacy. Circle is leading this initiative with Allaire highlighting collaboration with over a hundred major companies across various sectors, stating:
“We announced today the kind of public availability of something called Arc, which is what we call an economic OS for the internet. It's a blockchain network...designed to bring financial and economic activity natively on the internet”
Impact on Financial Markets and the Middle East
Arc is anticipated to impact blockchain technology and the financial sector significantly. Its focus on enterprise-grade features and collaboration aligns with current business demands in the Middle East, noted for needing advanced cross-border settlement solutions.
The Middle East's interest in USDC-based transactions underscores Arc's strategic alignment with regional markets. Businesses in the area leverage digital dollars to improve transaction speeds, harmonizing with regulatory advancements in the UAE.
Arc's Position in the Blockchain Landscape
Circle's Arc project follows previous Layer-1 launches, yet emphasizes institutional utility. Stablecoins like USDC continue redefining financial transactions, laying groundwork for advanced payment, FX, and lending frameworks.
Arc's implications for financial markets include a heightened role in on-chain finance, with projections for scalability driven by new regulatory frameworks. The blockchain's features may catalyze a shift in institutional adoption, with data supporting increased USDC deployment for settlements.