Circle has announced the launch of its native Layer-1 blockchain, Arc, and an expanded payment network as part of its strategy to diversify revenue streams and reduce reliance on interest income. The company raised $222 million through a pre-sale of its ARC token, achieving a valuation of $3 billion. Arc aims to capture fees from USDC transfers, offering sub-second finality and using USDC as its native gas token. Additionally, Circle's new Circle Payments Network (CPN) connects financial institutions directly to its network, reducing dependency on exchanges like Coinbase. CPN has seen significant growth, with 136 registered institutions and $8.3 billion in annualized transaction volume. These initiatives are part of Circle's broader effort to vertically integrate its operations and capture more value across the payment stack, amid challenges posed by declining interest rates and high distribution costs.