Circle Arc · USDC-native invoice factoring

Turn invoices into liquid capital

Facevalue tokenizes a receivable as a debt-claim NFT, lets an investor buy it out at a discount in USDC, and settles the face amount deterministically at maturity — no counterparty does the moving, the contract does.

USDC-native gasSub-second finalityERC-721 receivablesDeterministic settlement

Total tokenized

0

USDC face value

Advanced

0

USDC funded

Active listings

0

awaiting funding

Avg est. APY

0%

listed + funded

The product

What is Facevalue?

A factoring market for tokenized receivables — the flagship vertical of the ARC portfolio.

The problem

Businesses sit on unpaid invoices for 30–90 days while cash is locked in the receivable. Traditional factoring is slow, opaque, and intermediated. The money shouldn't depend on trusting a middleman to pay out — it should depend on code.

The solution

A seller mints the invoice as an ERC-721 debt-claim NFT, lists it with an advance and a haircut, and an investor buys it out in USDC. At maturity the face amount is repaid and split by the contract — principal + fee to the investor, the remainder to the seller.

Core thesis: agents decide, rails execute. The underwriting terms (advance, haircut) are a decision an agent proposes. The money movement is a deterministic rail — a plain, testable contract function — never a model's reasoning. Every payout is traceable to its inputs.

The flow

How it works

A single lifecycle, enforced by the state machine on-chain.

01

Mint

Tokenize a receivable as an ERC-721 debt-claim NFT. The doc hash is a keccak256 of the invoice — the PDF itself never touches the chain.

02

Fund

An investor buys the NFT at a discount in USDC. The advance goes to the seller; the NFT moves to the investor.

03

Settle

At maturity the face amount is marked repaid and split — investor gets principal + fee, the seller the remainder.

lifecycleNoneListedFundedRepaidDefaultedCancelled

Why Circle Arc

Built on a chain designed for money

Arc is a USDC-native L1 — the whole stack is one asset, not a gas token plus a wrapped stablecoin.

USDC is the gas

No ETH anywhere. Every fee is paid in USDC — the same asset you factor with.

Sub-second finality

Deterministic, instant settlement. Fund and repay confirm in under a second.

No wrapped tokens

Native USDC and EURC are already ERC-20 (6 decimals). No WETH-style wrapper to trust.

CCTP / Gateway ready

Native cross-chain hooks for the next phase — factor across chains via Circle's rails.

Interactive

Try the math

Drag the sliders and watch the settlement split and investor APY update live.

Purchase price8,000 USDC
Investor fee500 USDC
Seller remainder1,500 USDC
Investor APY76.0%

APY = (haircut ÷ advance) × (365 ÷ tenor) — simple, non-compounded.

Funds are conserved by construction — total USDC in equals total USDC out. Proven by the test_FullLifecycleFundsConserved suite.

Market composition

How the book breaks down

Live distribution of the current on-chain book.

0invoices
Listed00.00 USDC
Funded00.00 USDC
Repaid00.00 USDC
Defaulted00.00 USDC
Cancelled00.00 USDC

Features

What's under the hood

A small, auditable surface that keeps the money path deterministic.

ERC-721 receivables

Every invoice is a transferable debt-claim NFT, not a ledger row.

Deterministic payout

Settlement is a plain function — no oracle, no discretionary step at payout.

Funds conservation

The split always sums to the face amount. Unit-tested.

Off-chain documents

Only a keccak256 doc hash is stored — the invoice data stays private.

Owner controls

Pause, unpause, and an optional investor whitelist are owner-gated.

Reentrancy-guarded

Every value-moving function carries a nonReentrant guard.

Comparison

Traditional factoring vs Facevalue

TraditionalFacevalue
SpeedDays to weeks of paperworkSub-second on-chain settlement
Counterparty riskTrust the factor to pay outCode escrows and splits
TransparencyOpaque fees and termsTerms on-chain, fully traceable
Asset formLedger entriesTransferable ERC-721 NFT
CostHeavy intermediationA few bps of USDC gas

Security

Money stays safe

The MVP follows the portfolio's security checklist.

  • Ownable — admin actions (pause, whitelist, fee) are owner-gated.
  • Pausable — all user actions halt on emergency pause.
  • ReentrancyGuard — every value-moving function is guarded.
  • SafeERC20 — return values checked on every transfer.
  • uint256 amounts — no overflow in the money math.
  • Checks-effects-interactions ordering.

Roadmap

Where this is going

Now

Single-investor buyout, owner pause, optional whitelist, off-chain doc hashing.

Next

Arc Privacy Sector for confidential invoice data; multi-investor by-share funding.

Later

CCTP/Gateway cross-chain factoring; an agentic underwriting layer (LLM decides, rail executes).

About the project

One of five ARC verticals

Facevalue is the invoice-factoring vertical of a portfolio that shares one rule — agents decide, rails execute.

01

agent-jobs

shared substrate

02

payroll-rail

pay runs + reconciliation

03

fx-checkout

multi-currency checkout

04

invoice-factoring

Facevalue — flagship

05

macro-pulse

signals + summaries

FAQ

Common questions

Is this a security / investment?

No. This is a demo system. It is not a securities offering and is not investment advice. No real funds move unless you fund a testnet wallet yourself.

What does the investor actually earn?

The fee = faceAmount × haircutBps / 10000, paid on top of the principal at repayment. With a 5% haircut on a 30-day invoice that annualizes to ~60% (simple, non-compounded).

What if the debtor doesn't pay?

After the due date the investor (or owner) can call markDefault. In the MVP there is no on-chain liquidation — the NFT stays with the investor.

Where does the invoice document live?

Off-chain. Only its keccak256 hash is stored on the NFT, so the underlying data stays private and verifiable.

Which chain and decimals?

Circle Arc (testnet 5042002) or local Anvil (31337). USDC ERC-20 is 6 decimals; gas is native USDC (18-dec view of the same balance).