Circle Internet Financial has made a significant acquisition of blockchain infrastructure developer Malachite, aiming to construct the ARC blockchain specifically optimized for USDC transactions. This development signals Circle’s ambition to move beyond Ethereum and other existing networks, creating a dedicated settlement layer for its stablecoin that could process transactions faster and cheaper than current alternatives.
The ARC blockchain’s design focuses on cross-border payments and institutional finance use cases – areas where Ripple’s XRP has traditionally competed. Early technical documents suggest ARC will feature sub-second finality and capacity for thousands of transactions per second, positioning USDC as both a stable store of value and an efficient medium of exchange. This vertical integration strategy follows Circle’s successful public listing and recent partnerships with major financial institutions.
While not a direct competitor to XRP, ARC’s specialized architecture for dollar-denominated settlements could reshape portions of the international payments landscape where both assets operate. Market analysts suggest this may pressure Ripple to accelerate development of its own stablecoin plans or enhance XRP’s utility features. The acquisition also demonstrates how major stablecoin issuers are increasingly building proprietary infrastructure rather than relying solely on public blockchains.
