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Circle Introduces Arc Blockchain: The Financial Operating System Connecting Wall Street with Silicon Valley

Circle Introduces Arc Blockchain: The Financial Operating System Connecting Wall Street with Silicon Valley

Bitget-RWA2025/10/28 21:20
By:Bitget-RWA

- Circle launches Arc public testnet, a Layer-1 blockchain with dollar-based fees and sub-second finality to bridge traditional finance and blockchain infrastructure. - Over 100 institutions including BlackRock, Visa, and Goldman Sachs are testing tokenized assets, cross-border payments, and programmable finance use cases on the network. - Arc's architecture integrates Circle stablecoins (USDC/EURC) with configurable privacy and plans for decentralized governance, aiming to become a "neutral economic infra

Circle Unveils Arc Public Testnet for Its Layer-1 Blockchain

Circle Internet Group (NYSE: CRCL) has introduced the public testnet for Arc, its proprietary Layer-1 blockchain aimed at increasing onchain economic activity. Marketed as an "Economic Operating System" for the web, Arc merges stable, dollar-denominated transaction fees, near-instant settlement, customizable privacy features, and seamless integration with Circle’s comprehensive platform. More than 100 organizations, including

, , Amazon Web Services (AWS), Goldman Sachs, and BNY Mellon, are already piloting applications on Arc, marking a significant milestone in connecting conventional finance with blockchain technology, as reported by a .

Circle Introduces Arc Blockchain: The Financial Operating System Connecting Wall Street with Silicon Valley image 0

The testnet features participation from leading global banks and fintech pioneers. Firms like BlackRock and Société Générale are trialing tokenized assets, lending protocols, and programmable foreign exchange settlements, while payment leaders such as Mastercard and dLocal are investigating cross-border transfers and merchant payment solutions. Cuy Sheffield, Visa's Head of Crypto, commented that Arc’s use of stablecoin gas fees and guaranteed finality could "support the scaling of new onchain infrastructure," underlining its promise to enhance global financial

, according to Yahoo Finance. At the same time, DeFi platforms like and Curve, along with fintech companies such as Brex and Nuvei, are exploring programmable finance applications, including AI-powered agents for instant value transfers, as detailed by .

Arc’s system is tailored for institutional requirements, providing options like adjustable privacy settings and compatibility with Circle’s stablecoins, such as

and EURC. The development plan includes moving toward decentralized governance, broadening validator involvement, and creating transparent mechanisms for open and auditable operations. CEO Jeremy Allaire stated that Arc is intended to serve as a "shared, impartial layer of economic infrastructure," managed collectively by its users rather than under centralized authority, according to a .

The launch has been met with a positive market response, with Circle’s share price climbing 7.2% in the last month to close at $143.29. Experts believe that collaborations with institutions like BNY Mellon and Goldman Sachs may draw more institutional capital and reinforce Circle’s influence in onchain settlement markets. The wider crypto industry has also experienced renewed confidence, fueled by recent approvals of digital asset ETFs and increased institutional engagement in blockchain infrastructure, Yahoo Finance noted.

As Arc develops, it must balance regulatory compliance with ongoing innovation. Blockchain analytics provider Elliptic has joined the testnet to deliver compliance solutions, ensuring anti-money laundering (AML) and counter-terrorism financing (CTF) protocols are embedded from the beginning, according to a

. This emphasis on regulatory preparedness is vital for attracting traditional financial institutions and enabling use cases like tokenized bonds and international FX settlements.

With a market capitalization of $32.95 billion and a stablecoin ecosystem worth $308 billion, Circle’s Arc testnet marks a strategic effort to reshape the global financial landscape. As more institutions and developers experiment with the network, Arc’s future will hinge on its capacity to scale securely, uphold neutrality, and deliver measurable improvements for the fragmented financial sector.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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