Increased centralization around stablecoin issuers and other fintech companies has defined much of the crypto market in recent years. And Circle has now furthered this trend by securing a $222 million raise for its blockchain infrastructure project, Arc. The funding came through a presale of the ARC token at a $3 billion fully diluted valuation. Circle already issues the second-largest stablecoin by market cap, USDC, but now seeks to consolidate more of the underlying technology around its dollar-pegged token. The goal is to cut costs, lower transaction fees, boost revenue streams, and enhance functionality for users, all while cutting other crypto networks, namely Ethereum, out of the equation. Circle’s recent token offering drew participation from a wide group of institutional backers. a16z crypto led with a $75 million commitment, followed by BlackRock, Apollo Funds, Intercontinental Exchange, SBI Group, Standard Chartered Ventures, ARK Invest, and others. Arc functions as a public Layer 1 blockchain built specifically for institutional finance. It uses USDC itself as the native gas token rather than relying on ether or other crypto-native assets. The network offers sub-second finality, opt-in privacy features, and full compatibility with the Ethereum Virtual Machine (EVM). Testing began in October, and the whitepaper describes the ARC token as a native coordination asset that handles governance, validator security, and overall network operations. If successful, Arc would allow Circle to capture more of the infrastructure that USDC currently depends on, reducing its exposure to traditional crypto settlement options on Ethereum and Solana.