Circle raises $222M for Arc tokenization

TLDR

Circle has raised $222 million in a presale of its Arc (ARC) token to fund a new institutional blockchain focused on USDC-based tokenization.

1. Circle sold $222 million of ARC at a fully diluted $3 billion valuation, with backing from a16z, BlackRock, Apollo and Intercontinental Exchange.
2. Arc is a USDC-native Layer 1 where USDC pays gas, while ARC governs security, staking and incentives for an institutional, tokenization-focused network.
3. The deal signals growing Wall Street appetite for compliant tokenization and makes Circle the first listed company to run a large, structured token presale.

Deep Dive

1. Funding Round And Backers

ondo/">Circle Internet Group raised $222 million in a private presale of ARC, valuing the new Arc blockchain at a $3 billion fully diluted network valuation.Circle sold the tokens to roughly a dozen institutional and crypto-native investors.

Andreessen Horowitz (a16z crypto) led with about $75 million, joined by BlackRock, Apollo Funds, Intercontinental Exchange (owner of the NYSE), ARK Invest, Haun Ventures, Standard Chartered Ventures, SBI, Janus Henderson and others.Coverage from Decrypt and CoinDesk highlights the breadth of this investor list.

Structurally, Circle sold around 740 million ARC at about $0.30 each, with multi-year lockups and investor protections that allow repayment if Circle misses key milestones such as a proof-of-stake transition by May 2028.Those terms are outlined in the presale summary.

2. Arcs Design And Token Model

Arc is a new Layer 1 blockchain aimed at institutional finance, stablecoin payments and tokenized assets, positioned as an Economic Operating System for on-chain contracts and markets.Circle describes Arc as optimized for stablecoin-based capital markets and regulated financial activity.

Technically, Arc will be EVM compatible, use USDC as the gas token for predictable dollar fees, and offer optional privacy via zero-knowledge proofs and secure computation.Circle says ARC instead acts as a coordination asset for governance, validator security and network operations.

The initial ARC supply is 10 billion tokens, with 25 percent retained by Circle, 60 percent allocated to builders and users, and 15 percent in a long term reserve.This allocation is detailed in multiple reports on the presale.

3. Why It Matters For Tokenization

Arc sits at the intersection of three big themes: institutional stablecoins, tokenization of assets and AI-driven agent payments. Circle ties Arc to programmable tokenized contracts, cross-border settlement and tools for AI agents to transact with USDC.Its Q1 update frames Arc and USDC as the infrastructure for an AI-native, on-chain economy.

Institutional testnet activity is already meaningful, with over 100 organizations including Visa, Goldman Sachs, HSBC and Anthropic experimenting on Arcs testnet according to Circles partner communications.Reports note more than 166 million testnet transactions to date.

Regulatorily, this is one of the first large token presales run by a public company under a structured, compliance-focused framework, and it reinforces the trend of tokenization being funded and governed by mainstream finance rather than retail ICOs.

Conclusion

Circles $222 million ARC presale is both a funding event and a strategic pivot from just issuing USDC to running its own USDC-native, tokenization-focused blockchain. TradFi names like BlackRock and Apollo backing the deal show that large investors are now comfortable funding compliant token networks, not just equity. The real test will be whether institutions choose Arc for live tokenized assets and AI-driven finance, or continue to build primarily on existing chains.