USDC issuer Circle is actively exploring the launch of a native token for its Arc blockchain, its new layer 1 chain purpose-built and optimized for stablecoin usage and enterprise payments.

At present, USDC is used as Arc’s native gas token, but Circle said in its Q3 earnings report that a native token could “foster network participation and drive adoption,” signaling a move toward a broader decentralized governance model.

This story is an excerpt from the Unchained Daily newsletter.

Circle debuted its Arc network in October with a public testnet late last month, which saw participation from over 100 companies across the financial, banking, payments, and digital asset sectors.

The stablecoin issuer posted a 202% annual increase in net income, which soared to $214 million this quarter, while USDC in circulation grew 108% year-over-year to $73.7 billion.