In crypto-related news, surged approximately +15% after the company disclosed a $222M presale for , its new Layer-1 blockchain targeting institutional stablecoin settlement, with the round valuing Arc at a fully diluted $3Bn.
It has drawn commitments from Andreessen Horowitz, BlackRock, Apollo Funds, Intercontinental Exchange, SBI Group, Janus Henderson, Standard Chartered Ventures, General Catalyst, Haun Ventures, and Bullish.
The funding milestone lands as Circle navigates a pre-IPO quiet period, making each institutional endorsement a direct input into the S-1 valuation case that the market is already pricing on secondary platforms.
The 15% move in Circle’s secondary market valuation is not occurring in isolation. BlackRock’s BUIDL fund, which crossed $1.7Bn in total value locked across five blockchains by December 2024 and reached $3.2Bn in AUM, relies on Circle’s smart contract for 24/7 redemptions, with 15% of BUIDL’s AUM processed through that channel as of April 2026.
BlackRock Crypto and the Circle IPO Snapshot: Arc Raise, BUIDL Integration, and the CRCL Valuation Thesis
Andreessen Horowitz led the Arc presale with a $75M investment, marking the largest commitment in the round, against a $3Bn valuation for the Arc network, separate from Circle’s corporate valuation, anticipated around $4Bn–$5Bn based on S-1 filing signals and secondary market activity.
In 2025, Circle reported $150M in protocol fees from BUIDL-USDC integrations, accounting for 12% of total revenue, a line item initiated by the April 2024 integration with BlackRock. This allowed BUIDL token holders to instantly redeem shares for USDC on-chain, enhancing liquidity.
Galaxy Digital’s Alex Thorn noted that the integration enabled “true 24/7 liquidity for TradFi assets,” and by November 2024, BUIDL’s AUM reached $500M, growing to $3.2Bn by April 2026, with Circle’s smart contract facilitating over $2.5Bn in transfers.
Arc’s Layer-1 network uses USDC for all fees, making it the primary settlement currency. Circle will hold 25% of Arc’s initial 10 billion ARC token supply, with 60% for users and developers, aligning Arc’s growth with USDC demand.
Stablecoin Regulation Deepens Arc’s Institutional Logic as Structural Tailwinds Build
Arc addresses institutional treasury desks’ concerns about on-chain settlement by implementing a fee-smoothing mechanism that stabilizes USDC transaction costs during congestion and ensures sub-second finality. This is vital for institutions needing quick confirmations for large transactions.
The SEC’s approval of Circle’s Transfer Agency status on February 14, 2025, supports the investment thesis by establishing a compliance framework for on-chain share transfers among qualified investors.
Progress on the Clarity for Payment Stablecoins Act may also benefit Circle, given USDC’s reserve transparency and its alignment with Moody’s standards. However, new regulations could impact Circle’s net interest margin and, in turn, USDC’s revenue.
Analyst Ryan Selkis noted significant engagement around the BUIDL-USDC integration for RWA tokenization, while Paradigm’s Matt Huang raised concerns about Circle’s reliance on BlackRock crypto, highlighting increased counterparty risk.
Arc vs. Existing Settlement Infrastructure: How Circle’s Layer-1 Compares
Arc enters the competitive arena of public blockchains and permissioned enterprise ledgers for institutional settlement. Launched on Ethereum in March 2024, the BlackRock crypto BUIDL addresses fee volatility and confirmation delays.
Its expansion in December 2024 to Solana, Polygon, Aptos, and Arbitrum highlights the need for multi-chain access, though these networks don’t use USDC as their native fee token, a feature that sets Arc apart.
With EVM compatibility, Arc simplifies the deployment of Ethereum-based applications, lowering barriers to institutional adoption.
JPMorgan forecasts tokenized funds could reach $2 trillion in AUM by 2030, with USDC potentially boosting Arc’s transaction volume. Circle’s CEO notes USDC’s critical role in cross-border payments, making it essential for all settlements on Arc.
Arc includes opt-in privacy features to protect transaction confidentiality while meeting regulatory requirements, showing Circle’s commitment to compliance at the protocol level.
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