Key Takeaways:
- Circle launched the public testnet of Arc, a new Layer-1 blockchain designed as what it calls a “new economic operating system” for the internet.
- The initiative involves over 100 financial and technology partners, including BlackRock, Goldman Sachs, HSBC, Visa, and Mastercard.
- Arc offers dollar-based fees, sub-second settlement, and optional privacy, with aims to evolve into a community-governed network.
- The launch follows Circle’s Deutsche Börse partnership, integrating USDC and EURC stablecoins into EU markets under MiCAR rules.
Circle Internet Group, the issuer of the USDC stablecoin, has launched the public testnet of Arc, an open Layer-1 blockchain network designed to serve as what the company calls a “new economic operating system” for the internet.
The initiative, seen as Circle’s most ambitious step yet in expanding blockchain-based financial infrastructure to mainstream markets, has drawn engagement from some of the world’s largest financial players, including BlackRock, Goldman Sachs, HSBC, Deutsche Bank, and Visa, as well as technology companies, such as Amazon Web Services, Mastercard, and Cloudflare.
Participants are exploring use cases in capital markets, payments, asset tokenization, and digital asset custody.
The testnet opens Arc to developers and enterprises seeking to build on a network offering dollar-based transaction fees, sub-second settlement, and optional privacy features. Circle said more than 100 financial institutions, technology firms, and blockchain developers are participating in the launch phase.
“Arc presents the opportunity for every type of company to build on enterprise-grade network infrastructure,” said Jeremy Allaire, Circle’s co-founder and chief executive. “its purpose-built to connect every local market to the global economy and advance a more open and efficient financial system.”
Meanwhile, Robert Mitchnick, head of digital assets at BlackRock, said testing Arc would help the firm understand “how stablecoin-denominated settlement and onchain FX capabilities might enable more efficient capital markets.”
Financial infrastructure providers such as BNY Mellon, State Street, Société Générale, and Standard Chartered are also participating to evaluate Arc’s potential for programmable settlement and regulatory-grade transparency.
Furthermore, Circle said the testnet includes stablecoin issuers across multiple jurisdictions, such as JPYC (Japan), Coins.ph (Philippines), and Stablecorp (Canada), and supports native gas fees using fiat-backed tokens, while developer tools are being provided by ecosystem partners including MetaMask, Alchemy, LayerZero, and Thirdweb.
Allaire said Circle aims to evolve Arc into a distributed, community-governed network over time by expanding validator participation and introducing transparent governance frameworks to strengthen openness and decentralization.
Meanwhile, Mastercard stated that Circle’s new network could help advance programmable money and digital financial infrastructure.
“Circle’s launch of Arc marks a meaningful step in advancing programmable money and digital financial infrastructure,” said Raj Dhamodharan, executive vice president of blockchain and digital assets at Mastercard. “Building on our work with Circle as an early design partner, we’re exploring how Arc’s foundation can enable secure, simple payment experiences across both fiat and stablecoin networks.”
Arc’s Launch Builds on Circle’s Expanding Global Partnerships
Arc’s debut comes weeks after Circle signed a memorandum of understanding with Deutsche Börse, marking the first major collaboration between a European exchange operator and a global stablecoin issuer under the EU’s MiCAR framework.
The deal, aimed at linking token-based payment networks with traditional financial systems, will integrate Circle’s EURC and USDC stablecoins into Deutsche Börse’s platforms, including its 360T digital exchange 3DX and institutional crypto provider Crypto Finance, with custody handled by Clearstream.
Circle CEO Jeremy Allaire said the move aims to cut settlement risk and costs and improve efficiency for financial institutions , while Deutsche Börse executive Stephanie Eckermann said it reflects growing efforts to bring digital assets into regulated market infrastructure.
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