USDC pays for gas on Arc. How much demand comes from payments?

USDC transfers rose 49% in the third quarter, while average circulation rose 8%. Circle’s Arc gives payment firms a place to pay network fees and settle transfers in USDC, but the amount they need to hold will depend on how quickly they can reuse incoming funds and whether they have to pay customers before money arrives. Summary USDC onchain transfers rose 49% to $13.9 trillion in the third quarter, while average circulation rose 8% to $73.3 billion. Arc opened on September 16 with USDC as its gas currency, letting providers pay fees and settle payments in the same token. Circle Payments Network reached $41.3 billion in annualised payment volume, a separate measure from quarterly USDC transfers across chains. Circle reported $658 million in reserve income, down 8% from a year earlier as lower reserve returns outweighed growth in average circulation. Circle expects the Tazapay deal to close in 2027, subject to regulatory approvals, and says the provider covers over 100 markets. USDC has recorded $13.9 trillion in third-quarter onchain transfers, up 49% from a year earlier, while average circulation rose 8% to $73.3 billion. The gap gives Circle’s Arc blockchain a concrete test. Paym...