In November 2025, the stablecoin market is seeing a seismic shift. Circle’s Arc Layer-1 blockchain has officially launched its public testnet, and the headline feature isn’t just another scaling gimmick or rollup. Arc is rewriting the rules by making USDC the native gas token. Forget about juggling volatile coins for transaction fees – on Arc, institutions and power users pay gas directly in USDC at its current price of $0.0274. This move is more than a technical tweak; it’s a strategic pivot aimed squarely at institutional DeFi adoption and operational efficiency.
Why USDC as Gas? The Institutional Playbook
For years, stablecoins like USDC have been the backbone of crypto trading pairs and on-chain settlements. But until now, their role in network infrastructure was strictly limited: you could transfer value, but you still needed ETH or SOL to pay gas. That friction is a non-starter for institutions managing real-world assets or executing high-frequency transactions where accounting precision and regulatory clarity are mission-critical.
Arc’s architecture eliminates this pain point. By using USDC as both the transactional currency and the gas token, Arc delivers a dollar-denominated environment for all network activity. This isn’t just cleaner UX – it’s an institutional requirement. CFOs want predictable costs denominated in dollars, not speculative assets. Compliance teams want full auditability without cross-token accounting headaches. Arc’s EVM compatibility ensures that existing Ethereum-based apps can port over seamlessly while enjoying sub-second finality and built-in foreign exchange rails.
Dual-Interface Model: One Token, Two Faces
The real engineering magic comes from Arc’s dual-interface model for USDC. On this chain, USDC exists simultaneously as both a native gas token and an ERC-20 asset. A precompiled contract keeps these two states perfectly synchronized – so whether you’re interacting with dApps through standard ERC-20 calls or paying transaction fees at the protocol level, your balance remains consistent.
This approach solves one of DeFi’s most persistent UX nightmares: fragmented balances and unpredictable gas costs. Now, treasury teams can manage a single asset for both operational spending and on-chain payments without worrying about sudden swings in fee tokens or bridging risks.
Sub-Second Finality and EVM Compatibility: Built for Scale
No institutional platform can afford to compromise on speed or security. Arc delivers sub-second settlement finality, meaning that trades, payments, and asset transfers lock in faster than legacy blockchains plagued by multi-block confirmation delays.
This speed comes with full EVM compatibility out of the box – so developers can deploy existing Ethereum contracts with minimal changes while leveraging Arc’s unique stablecoin-native features. For global banks eyeing tokenized FX flows or fintechs running real-time payrolls in stablecoins, this is a game-changer.
USD Coin (USDC) Price & Stability Forecast: 2026–2031
Professional outlook on USDC price stability and adoption as Arc L1’s native gas token
| Year | Minimum Price | Average Price | Maximum Price | Year-over-Year Change (%) | Key Market Scenario |
|---|---|---|---|---|---|
| 2026 | $0.98 | $1.00 | $1.02 | +0.0% | Arc mainnet launch, robust institutional adoption, stable regulatory environment |
| 2027 | $0.98 | $1.00 | $1.02 | +0.0% | Increased Arc transaction volume, global stablecoin regulation progress |
| 2028 | $0.97 | $1.00 | $1.03 | +0.0% | Potential market volatility, stablecoin competition rises, continued Arc L1 growth |
| 2029 | $0.96 | $1.00 | $1.04 | +0.0% | Broader institutional integration, possible minor depegging events |
| 2030 | $0.96 | $1.00 | $1.04 | +0.0% | USDC maintains top position as institutional settlement layer |
| 2031 | $0.95 | $1.00 | $1.05 | +0.0% | Matured stablecoin landscape, Arc L1 reaches global scale |
Price Prediction Summary
USDC is forecast to maintain its $1.00 peg with minimal volatility through 2031, driven by its critical role as Arc L1’s native gas token and ongoing institutional adoption. Occasional minor deviations may occur due to market stress or regulatory shifts, but the overall stability is expected to remain strong, especially as compliance and transparency improve.
Key Factors Affecting USD Coin Price
- Arc L1 mainnet adoption and transaction volume by institutions
- Global regulatory clarity for stablecoins (e.g., GENIUS Act)
- Circle’s reserve transparency and risk management
- Technological improvements in Arc blockchain (EVM compatibility, privacy features)
- Stablecoin competition (USDT, government CBDCs, new entrants)
- Broader macroeconomic factors and demand for digital dollars
Disclaimer: Cryptocurrency price predictions are speculative and based on current market analysis.
Actual prices may vary significantly due to market volatility, regulatory changes, and other factors.
Always do your own research before making investment decisions.
The public testnet has already attracted over 100 global partners spanning payments networks, capital markets firms, and compliance vendors – all stress-testing how dollar-stable gas changes their workflows compared to legacy ETH/SOL chains.
Arc’s launch is not just a technical milestone; it’s a strategic wedge into institutional DeFi. By decoupling transaction costs from volatile assets, Arc lets enterprises build, settle, and account in dollars at every layer of the stack. This delivers the kind of operational clarity and risk management that CFOs, auditors, and regulators demand, without sacrificing composability or open architecture.
For high-frequency traders and market makers, the implications are immediate: no more slippage on gas conversions, no more surprise fee spikes during network congestion. Every transaction fee is denominated in USDC at $0.0274, eliminating the need for dynamic hedging or complex treasury operations just to keep dApps running. This is especially relevant as regulatory frameworks like the GENIUS Act continue to clarify stablecoin reserve requirements and reporting standards through 2026.
Institutional Adoption: From Testnet to Real-World Flows
The early momentum is real. With over 100 global partners already live on the Arc testnet, including Tier-1 banks, cross-border payment rails, and digital asset custodians, the feedback loop between infrastructure providers and institutional end-users is tighter than ever. Compliance-first features like opt-in privacy controls are being battle-tested for capital markets use cases where data sovereignty matters as much as transactional speed.
On-chain analytics already show a steady ramp in USDC velocity on Arc since launch. The network’s sub-second finality is proving critical for FX settlements and instant settlement of tokenized real-world assets, two verticals that have struggled with latency and reconciliation headaches on legacy chains.
What Comes Next: The Stablecoin-Native Era
Arc’s approach, using USDC as a native gas token: is now setting a new standard for EVM compatible stablecoins in 2025. As more institutions migrate workflows to Arc L1, expect to see:
- Simplified accounting: All fees tracked in dollars; no more multi-token confusion.
- Programmable payments: Real-time payrolls, automated FX swaps, and recurring B2B invoices, all denominated in USDC.
- Capital efficiency: Treasuries can deploy working capital directly into DeFi without worrying about gas volatility or bridging risks.
- Tighter compliance: Enhanced audit trails thanks to single-token flows and built-in privacy features.
This isn’t just another blockchain pivoting toward “enterprise adoption”: it’s an architectural reset that puts stablecoins at the protocol core. If you’re trading or building in DeFi today, watch how USDC on Arc L1 rewires everything from market structure to settlement rails. The playbook is speed and precision, and with dollar-stable gas at $0.0274 per unit, institutions finally have the tools they need to scale on-chain finance without compromise.
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