Core Insights - Circle Internet Group's Jeremy Allaire describes Arc as an "economic OS for the internet," emphasizing the shift of core financial workflows to on-chain systems that require predictable costs and performance [1] Group 1: Arc's Features and Functionality - Arc is designed for payments, foreign exchange, lending, and capital markets, featuring dollar-denominated fees, sub-second settlement, and privacy controls for enterprises [2] - The public testnet for Arc launched on October 28, with the mainnet expected in 2026 after testing smart contracts, transaction flows, and token launches [2] - USDC is highlighted as a practical bridge for various use cases, with significant demand from emerging markets, particularly in the Middle East, where businesses prefer digital dollars for quick value transfer [2] Group 2: Regulatory and Market Positioning - Circle is taking regulatory steps to operate in the UAE, supporting institutions that seek on-chain dollar solutions, with recent U.S. legislation aiding the integration of stablecoin payments and workflows [3] - The Arc initiative involves over 100 companies across banking, payments, technology, and AI, with a business model focused on transactions and ecosystem collaboration rather than a single-company approach [4] Group 3: Economic Model and Vision - Arc provides a dollar-priced, high-throughput environment for stablecoin-native finance, with USDC serving as the settlement and fee unit for developers [5] - The emphasis is on predictable costs, fast finality, and compliance-friendly privacy to facilitate the movement of financial operations to programmable systems [5]