# Kraken Enables USDC Deposits and Withdrawals on Arc Network Arc's EVM-compatible Layer 1 platform now supports USDC transactions with predictable dollar-denominated fees. - **Source:** [Kraken Blog](https://brifing.si/source/d5b3c3d8-9f4f-4485-9bd1-50ba4c5fe7ae) - **Published:** 2026-09-16 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/bb7cfe04-0daf-4a85-af3a-cccb60acadae ## Arc network goes live Arc's mainnet launched on September 16, 2026 after a private testing phase involving over 100 institutional builders. The EVM-compatible Layer 1 platform specializes in financial workflows like settlement, collateral management, and treasury operations. Its architecture supports interoperability with major blockchains including Ethereum and Solana while offering sub-second transaction finality. This deterministic settlement eliminates challenge risk for financial institutions. ## USDC as native gas Arc uniquely uses USDC stablecoin for transaction fees, keeping costs predictable in dollar terms regardless of transfer size. The network integrates directly with Circle's platform including USDC, CCTP and Gateway infrastructure. This design choice positions Arc as a stable settlement layer for institutional DeFi applications where price volatility in gas fees would be problematic. Businesses can also opt for privacy controls while maintaining audit trails. ## Kraken's phased rollout Kraken has enabled USDC deposits and withdrawals via Arc, though trading functionality will activate only after sufficient liquidity emerges. The exchange maintains its policy of not pre-announcing which additional assets might become available. Geographic restrictions may apply for certain services. Kraken warns that stablecoin valuations can fluctuate on secondary markets despite the 'stable' designation. ## Financial market applications Arc's launch services include lending, borrowing, trading, onchain foreign exchange, payments and tokenized assets. The platform's sub-second finality and stable gas fees specifically target real-time financial workflows. Institutional validators secure the network, which emphasizes integration with traditional finance infrastructure. Arc's design reflects growing demand for blockchain solutions that meet institutional settlement requirements. ## Technical differentiators Arc achieves deterministic transaction finality in under one second through its institutional validator set. The network's architecture separates execution from settlement layers while maintaining EVM compatibility. This enables financial applications requiring real-time money movement without compromising smart contract functionality. Privacy features allow businesses to shield sensitive transaction details while preserving necessary audit capabilities. ## Institutional adoption path Arc's private mainnet period involved extensive testing with financial institutions before public launch. The platform's focus on known institutional validators and Circle integration demonstrates its enterprise orientation. By using USDC for gas and supporting existing financial workflows, Arc lowers adoption barriers for traditional finance players exploring blockchain solutions. ## Market implications Arc's launch represents another step in bridging decentralized finance with institutional requirements. The platform's design choices - stable gas fees, fast finality, and privacy controls - directly address pain points preventing wider blockchain adoption in finance. Kraken's support provides immediate liquidity access while other exchanges will likely follow as ecosystem activity grows. ## Future development outlook Arc's roadmap focuses on expanding financial primitives while maintaining its core value proposition of predictable costs and rapid settlement. The platform's success will depend on attracting sufficient institutional liquidity to realize its vision as a settlement layer. As more assets become available, Arc could emerge as a preferred infrastructure for regulated financial applications on blockchain. ## Sources covering this story - https://blog.kraken.com/product/new-features/usdc-on-arc-deposits-and-withdrawals-now-available — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._