Circle, the second-largest stablecoin issuer, has officially launched the public testnet for Arc, its open layer-1 blockchain designed to transform the global financial infrastructure. Described as the “Economic Operating System for the Internet,” Arc represents Circle’s vision of merging traditional finance with blockchain technology to create faster, more efficient, and transparent financial systems.
The initiative already boasts participation from over 100 leading companies, including BlackRock, Goldman Sachs, and Visa. According to Circle’s CEO, Jeremy Allaire, the testnet has seen strong early engagement from major financial institutions and technology partners that collectively manage significant global assets and payments.
Arc is built to integrate seamlessly with Circle’s USDC stablecoin, offering predictable US dollar fees, rapid transaction finality, and privacy features for secure financial operations. The platform supports a wide range of use cases—from lending and payments to foreign exchange—and is engineered to deliver the reliability and scalability needed for both traditional finance and Web3 ecosystems.
Arc Connects Traditional Finance and Web3
Major global banks such as BNY Mellon and Deutsche Bank are among the first to participate in the Arc testnet. By linking financial markets across the world, Arc aims to create a unified infrastructure that bridges institutional finance with blockchain-based innovation.
The network supports fiat-pegged tokens, enabling seamless integration of digital assets with real-world currency systems. This functionality is expected to play a key role in the future of tokenized assets, settlements, and cross-border payments.
Future Vision: Governance, Privacy, and AI Integration
Circle plans to evolve Arc into a community-governed network, empowering participants to shape its future through decentralized governance. The roadmap also includes private stablecoin issuance, catering to enterprises seeking customized financial solutions, and AI integration to enhance developer tools and automate complex financial workflows.
With Arc’s public testnet now live, Circle is positioning itself at the forefront of the next generation of financial infrastructure—where blockchain, stablecoins, and institutional finance converge to build a more inclusive and efficient global economy.
