Circle, the company behind the USDC stablecoin, has launched the public testnet of its new Layer-1 blockchain called Arc. This launch allows developers and financial institutions to begin building and testing applications in preparation for the mainnet debut.
According to the official announcement, Arc is designed as a Layer-1 blockchain to support real economic activities such as payments, lending, asset settlement, and trading. Circle has described Arc as an "economic operating system" for the internet.
Arc Public Testnet is now live.
— Arc (@arc) October 28, 2025
Open to developers and enterprises globally, Arc is the Economic OS for the internet that unites programmable money and onchain innovation with real-world economic activity.
Start building: https://t.co/RMjxJmjcsH
Learn more:… pic.twitter.com/OtGfrCIVdY
In contrast to many existing blockchains, Arc utilizes predictable, dollar-based transaction fees and is engineered for very fast settlement. Circle believes these features will make it more accessible for financial institutions to adopt.
Participants in the Testnet
The testnet has commenced with the participation of over 100 companies from the banking, fintech, payments, and infrastructure sectors. This includes prominent banks and asset managers such as BlackRock, HSBC, State Street, and Deutsche Bank, alongside technology firms like AWS and Coinbase.
Asset managers including Invesco and payment networks like Mastercard and Visa are also engaged in testing tokenized fund operations and cross-border settlement processes on Arc.
Several regional stablecoin issuers, such as AUDF (Australia), BRLA (Brazil), MXNB (Mexico), and PHPC (Philippines), are utilizing the testnet to explore stablecoin swaps and cross-border foreign exchange transfers facilitated by Arc.
Circle CEO Jeremy Allaire stated, "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 integrating with Arc. Wallets such as MetaMask, Ledger, and Fireblocks are implementing access to Arc, while tools like Alchemy and Thirdweb are providing support for builders. Cross-chain services, including Wormhole and Stargate, are establishing connections between Arc and other networks.
Through the integration of Chainlink CCIP, Data Feeds, Data Streams, and the Automated Compliance Engine (ACE), Arc empowers developers to create sophisticated cross-chain applications that adhere to various regional regulations and operate with enhanced security and reliability.
We're excited to announce Chainlink has been selected as a core ecosystem partner of @arc , the newly launched layer-1 blockchain by @circle . https://t.co/DA1mAIVCIy
— Chainlink (@chainlink) October 28, 2025
By integrating Chainlink CCIP, Data Feeds, Data Streams, and the Automated Compliance Engine (ACE), Arc enables… pic.twitter.com/R9HqlpW7Vt
Circle has indicated that governance will gradually transition towards decentralization, with validators and ecosystem participants progressively assuming responsibility for network operations.
On the market side, trading and liquidity support is being provided by platforms such as Uniswap, Aave, Coinbase, Kraken, and Wintermute, alongside custodians like BitGo and Copper. This comprehensive range of wallets, tools, exchanges, and custodians is intended to ensure that Arc can support both developers and financial institutions from its inception.
Payments are anticipated to be among the earliest use cases for Arc. Firms including Visa, Mastercard, AWS, Cloudflare, Nuvei, Paysafe, Pairpoint (Vodafone), dLocal, and Yellow Card are investigating Arc's potential to facilitate faster and more cost-effective cross-border transactions.