Circle, the company behind the USDC stablecoin, has launched the public testnet of its new Layer-1 blockchain called Arc, allowing developers and financial institutions to start building and testing applications ahead of a mainnet launch.
The official announcement reads that Arc is built as a Layer-1 blockchain aimed at supporting real economic activity such as payments, lending, asset settlement and trading. Circle describes Arc as an “economic operating system” for the internet.
Unlike many existing blockchains, Arc uses predictable, dollar-based transaction fees and is designed for very fast settlement, which Circle believes makes it easier for financial institutions to use.
Who is participating in the Testnet?
The testnet has opened with participation from more than 100 companies across banking, fintech, payments, and infrastructure. This includes major banks and asset managers such as BlackRock, HSBC, State Street, and Deutsche Bank, along with technology firms such as AWS and Coinbase.
Asset managers like Invesco and payment networks such as Mastercard and Visa are also involved in testing tokenized fund operations and cross-border settlement.
Several regional stablecoin issuers, including AUDF (Australia), BRLA (Brazil), MXNB (Mexico), and PHPC (Philippines), are using the testnet to explore stablecoin swaps and cross-border foreign exchange transfers on Arc.
Circle CEO Jeremy Allaire said, “Arc presents the opportunity for every type of company to build on enterprise-grade network infrastructure—advancing a shared vision that a more open, inclusive, and efficient global economic system can be built natively on the internet.”
Developer and ecosystem support
Developer platforms and infrastructure providers are also onboarding. Wallets such as MetaMask, Ledger, and Fireblocks are integrating access to Arc, while tools like Alchemy and Thirdweb are supporting builders. Cross-chain services, including Wormhole and Stargate, are connecting Arc with other networks.
By adding Chainlink CCIP, Data Feeds, Data Streams, and the Automated Compliance Engine (ACE), Arc allows developers to create advanced cross-chain applications that follow regulations in different areas and work securely and reliably.
Circle says governance will move towards decentralization over time, with validators and ecosystem participants gradually taking on responsibility for network operation.
On the market side, trading and liquidity support is coming from platforms like Uniswap, Aave, Coinbase, Kraken, and Wintermute, along with custodians such as BitGo and Copper. This mix of wallets, tools, exchanges, and custodians is meant to ensure that Arc can support both developers and financial institutions from day one.
Payments are expected to be one of Arc’s earliest use cases. Firms including Visa, Mastercard, AWS, Cloudflare, Nuvei, Paysafe, Pairpoint (Vodafone), dLocal, and Yellow Card are exploring whether Arc can support faster and cheaper cross-border transactions.
Also Read: Circle and ClearBank Join Forces to Boost EU Stablecoin Liquidity
