Circle, the company behind the widely used USDC stablecoin, has launched the Arc testnet, a new blockchain designed to bring together traditional financial institutions and on-chain technology. With support from major partners such as Visa, Mastercard, BlackRock, Goldman Sachs, Coinbase, and several global banks, Arc marks one of the most ambitious attempts yet to link everyday payments, financial markets, and blockchain-based settlement.
The launch on October 29, 2025, has sparked attention across the industry because it suggests a future where sending money across borders, settling assets, and moving stablecoins works with the reliability of banking systems but the speed of modern blockchain networks. Arc aims to operate as an “economic operating system for the internet,” carrying everything from payments to tokenized treasuries.
A Network Built Around Fast, Predictable Digital Payments
Arc has been developed as a new Layer-1 blockchain with USDC at its core. Instead of using a native token with fluctuating fees, Arc uses USDC as the gas token, which allows transactions to run with predictable, dollar-based costs. For global institutions, this solves one of the biggest barriers to blockchain adoption: the unpredictability of fees during periods of congestion.
Early testing shows sub-second finality, which means payments and transactions settle almost immediately. For companies that rely on fast settlement, such as payment processors, banks, fintech firms, and trading platforms, this speed could dramatically reduce delays and remove the need for slow, multi-day settlement cycles.
Circle CEO Jeremy Allaire has described Arc as infrastructure designed to connect local financial markets to the global economy. With this design approach, Arc aims to support lending, capital markets, foreign exchange flows, tokenized treasuries, global payments, and other financial tools that require both speed and regulatory trust.
Circle CEO @jerallaire spoke with @SaraEisen on @CNBC Money Movers about the launch of Arc Public Testnet—and how companies across finance, AI, and technology are exploring use cases on the network.
Check it out https://t.co/fQQsBQhPV0
— Arc (@arc) October 29, 2025
Institutional Participation Signals a New Direction for Stablecoins
Arc’s testnet has quickly attracted more than 100 participants across finance, technology, and payments. Some of the most notable groups include Visa, Mastercard, BlackRock, Apollo, BNY Mellon, State Street, Coinbase, and Uniswap. Developer partners such as Chainlink, Anthropic, and Alchemy are also contributing to the network’s early ecosystem.
Their involvement shows how quickly large institutions are moving toward blockchain infrastructure that combines regulatory compliance with programmable settlement. Firms experimenting with Arc are using it to test automated payments, tokenized financial instruments, and real-time clearing systems that are difficult to achieve on traditional rails.
To support these activities, Arc includes optional privacy features designed to meet data-protection requirements. Institutions can protect sensitive information while still maintaining transparent records required for audits and compliance reporting. This balance of privacy and transparency is becoming a key requirement for large financial organizations exploring tokenized assets.
A Growing Global Role for Stablecoins
Arc’s launch also aligns with a broader shift toward regulated stablecoin use around the world. One of the earliest regional expansions comes from BDACS, a South Korean firm introducing a Korean-won backed stablecoin (KRW1) on the Arc blockchain. This step marks a move toward expanding regulated digital currencies in Asia and integrating them into global payment systems.
By supporting multiple stablecoins and institutional partners, Arc positions itself as a settlement layer for cross-border payments, regulated tokenization, and real-time remittances. With the global stablecoin market already surpassing $200 billion in volume, Arc seeks to provide a reliable foundation for growth as more institutions enter the space.
A Path Toward Decentralization and Community Governance
Although Circle currently oversees the Arc testnet, the company plans to shift toward decentralized governance in the future. Compliance partners like Elliptic are already integrating monitoring tools to enhance security and transparency. Over time, Arc is expected to move from a Circle-managed system to a community-guided protocol similar to other publicly governed blockchains.
Industry analysts see Arc as the beginning of a new era where traditional financial companies adopt blockchain infrastructure not as a speculative experiment but as part of their core operations. If successful, Arc could serve as the backbone for global commerce, enabling stablecoin-powered payments, tokenized assets, and automated financial systems.
The table below summarizes Arc’s core features.
| Category | Arc Testnet Design |
|---|---|
| Native Gas Token | USDC with predictable dollar-based fees |
| Settlement Speed | Sub-second finality |
| Institutional Partners | Visa, Mastercard, BlackRock, banks, fintech firms |
| Developer Partners | Chainlink, Alchemy, Anthropic, Coinbase, Uniswap |
| Compliance Features | Optional privacy tools and audit-ready transparency |
| Long-Term Vision | Decentralized, community-governed blockchain |
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About the Author: John Brok
