Circle Launches Arc Testnet with Participation from Major Financial Institutions

Circle debuts Arc testnet with participation by BlackRock, Goldman Sachs, Visa

Circle, the world's second-largest stablecoin issuer, has officially launched the public testnet for Arc, its new open layer-1 blockchain network. This initiative aims to integrate global financial infrastructure onchain. The launch event, dubbed the "Economic Operating System for the internet," has seen participation from over 100 prominent companies across banking, capital markets, and fintech sectors. Notable participants include BlackRock, Goldman Sachs, Visa, Mastercard, and State Street, as announced on Tuesday.

“With Arc’s public testnet, we’re witnessing tremendous early interest as key companies, protocols, and projects start to build and test,” stated Circle CEO Jeremy Allaire. “Collectively, these firms cater to billions of users, managing and transferring hundreds of trillions in assets and payments,” he added.

Arc aims to provide benefits such as predictable US dollar-based fees, sub-second transaction finality, and optional privacy controls. It is directly integrated with Circle's USDC stablecoin and payments ecosystem, supporting a diverse array of financial applications, spanning lending, capital markets, global payments, and foreign exchange (FX).

Key Takeaways

Circle launched the Arc public testnet to enhance global financial infrastructure.
Major financial institutions, including BlackRock and Goldman Sachs, are actively participating.
Arc aims to revolutionize financial transactions with predictable fees and rapid confirmation times.
It supports a variety of financial applications alongside stablecoin infrastructure.
Future plans include transitioning Arc into a community-governed network.

Related: ClearBank to become one of the first EU banks to join Circle Payments Network

Institutions Engaging with Circle’s Arc Testnet

The launch of the testnet has attracted interest from major financial institutions like Apollo, BNY Mellon, Intercontinental Exchange, and Deutsche Bank, along with global payment companies such as Mastercard, FIS, Paysafe, and Nuvei.

Major crypto platforms participate in Arc testnet. Source: Circle

Circle emphasized that Arc’s dedicated architecture is designed to connect local markets around the world, including Africa, the Americas, and Asia, thereby providing enterprise-grade infrastructure for traditional financial institutions and Web3-native projects alike.

A key functionality of Arc is its role in stablecoin infrastructure. The network is compatible with fiat-pegged tokens, tokenized funds, and FX liquidity. Issuers from seven countries, including JPYC (Japan), BRLA (Brazil), MXNB (Mexico), and PHPC (Philippines), have already joined the testnet.

Arc's ecosystem goes beyond finance, as it collaborates with leading development and infrastructure providers like MetaMask, Fireblocks, Chainlink, Alchemy, and LayerZero. Crosschain bridges, including Wormhole and Stargate, are also integrated into the platform. AI integration is on the horizon, with Anthropic’s Claude Agent SDK set to enhance the developer experience through AI-driven tools.

Related: Tempo, Stripe’s new blockchain, hits $5B valuation in $500M funding round

Circle's Vision for Global Market Connectivity

Circle's Allaire remarked that Arc is “purpose-built to connect every local market to the global economy.” He also noted that it offers an opportunity for diverse companies to “develop on enterprise-grade network infrastructure.”

The long-term vision for Arc involves transforming it into a community-governed network, expanding validator engagement, and establishing transparent governance structures.

Circle initially announced plans for the Arc network in August, revealing that USDC would serve as its native gas token. Recently, Allaire disclosed that Circle is also developing private stablecoins on the Arc network.

Circle CEO announces building private stablecoins on Arc. Source: Jeremy Allaire

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