Circle, the issuer of the USDC stablecoin, has unveiled the public testnet for Arc, a new open Layer-1 blockchain network, in collaboration with over one hundred organizations across the financial and economic sectors.
In Brief
- •Circle has rolled out the Arc public testnet, created in collaboration with more than one hundred companies worldwide.
- •CEO Jeremy Allaire said the testnet has already drawn major companies with billions of users worldwide.
- •Participants include global banks like BlackRock, HSBC, and Goldman Sachs, as well as tech and payment firms such as Visa, AWS, and Mastercard.
Arc’s Capabilities and Access for Developers
According to Circle, Arc represents a major advancement in developing a digital financial network designed to connect economies across the world. The network includes several key functions, such as transaction fees based on the US dollar, near-instant transaction completion, customizable privacy options, and full integration with Circle’s existing suite of products.
The company explained that Arc enables a wide range of use cases across lending, capital markets, foreign exchange (FX), and global payments. It added that developers and enterprises now have access to the testnet to build and experiment within what it calls an “Economic Operating System (“OS”)” for the internet.
Widespread Industry Participation in Arc’s Testnet
Circle’s co-founder, chairman, and CEO, Jeremy Allaire, noted that Arc’s public testnet has already attracted widespread engagement, including participation from large corporations that collectively serve billions of users. He stated that 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.
Participants in the testnet cut across key sectors and regions, reflecting broad engagement in Arc’s development.
- •Major financial institutions taking part include BlackRock, HSBC, Deutsche Bank, Invesco, and Goldman Sachs, showing strong interest from global banking and investment leaders.
- •The initiative has also drawn participation from leading fintech and payments firms such as Amazon Web Services, Cloudflare, Mastercard, Paysafe, and Visa.
- •Prominent cryptocurrency exchanges, including Coinbase, Kraken, Bitvavo, ByBit, and Coincheck, are actively involved in the ongoing testing phase.
- •Companies issuing local stablecoins in Korea, Brazil, and Japan—such as Forte Securities with KRW1, Avenia with BRLA, and JPYC Inc. with JPYC—are among several others participating in the testnet.
Supporting the Use of Stablecoins in Traditional Finance
Circle highlighted that Arc acts as a foundational system for organizations issuing fiat-backed stablecoins, tokenized financial instruments, credit offerings, and short-term investment products. The network’s planned development also includes using stablecoins for transaction fees and implementing features to facilitate their conversion and foreign exchange operations.
This development comes amid a broader movement to incorporate stablecoins into traditional finance, as regulatory frameworks in several countries evolve to accommodate these fiat-backed digital currencies within established financial systems.