In July 1856, Arctic returned to sea to make depth soundings in preparation for the laying of the first transatlantic telegraph cable. By late in the month, she was at St. John's in the Dominion of Newfoundland, where she began her series of soundings. She arrived at Queenstown (now Cobh) in Ireland on 23 August 1856. On her return voyage, Arctic completed more soundings for the cable before arriving at Sr. John's on 30 September 1856. She then moved from St. John's back to New York, where she was decommissioned on 21 October 1856.
Arctic was commissioned into the U.S. Coast Survey, and in 1857 and early 1858 she made further cable soundings in the Atlantic Ocean. Recommissioned into U.S. Navy service, she cruised the waters around Cuba between May and July 1858 in company with an American naval squadron sent there to protect American merchant ships from Britishcruisers still practicing their so-called "right" of visit and search.
Early in 1859, Arctic's propulsion machinery was removed, and she was turned over to the U.S. Lighthouse Board for duty as a lightship. After 20 years of lightship service off the coast of North Carolina, she was sold at public auction on 16 April 1879.