Circle Internet Group, Inc. (CRCL:NYSE) has recently announced the launch of the public testnet for Arc. This initiative introduces an open Layer 1 (L1) blockchain network designed to cater to developers and enterprises striving to enhance economic activity within an on-chain ecosystem. The launch is bolstered by collaborations with over 100 firms from the financial and economic sectors, along with significant infrastructure support and international outreach.
Arc aims to provide developers and businesses with the tools needed to deploy, test, and build on what Circle refers to as the new Economic Operating System (OS) for the internet. This system aspires to transform the existing financial landscape by enabling an open, programmable financial infrastructure for the digital economy.
One of the highlighted features of Arc is its “predictable” dollar-based fees, which ensure clarity and stability in transaction costs. Transaction finality is achieved in sub-seconds, providing a rapid and seamless experience for users. Moreover, Arc offers configurable privacy options, allowing developers to create solutions that align with privacy needs directly integrated into Circle’s existing platform. The architecture supports diverse use cases ranging from lending, capital markets, and foreign exchange to international payments.
At the core of this ecosystem are markets for capital, which include equity, fixed income, and derivatives. Together with the clearing and custody infrastructure, these markets enable new growth opportunities. Upgrading the existing financial system to this new economic operating system opens avenues for improved efficiency and broader reach, enhancing the overall functionality of capital markets.
Several prestigious capital markets companies are already engaging with Arc. Notable names like Apollo, BNY Mellon, Intercontinental Exchange Inc, and State Street are among those collaborating to harness the potential of this innovative network. Retail and institutional banks, alongside asset managers and insurance companies, play vital roles in facilitating capital, credit, investing, payments, and treasury solutions.
With Arc, opportunities within payments, lending, asset issuance, and capital markets are rapidly expanding in the on-chain domain. A variety of banks and asset managers have joined the platform, including Absa, Bank Frick, BlackRock Inc., BTG Pactual, Clearbank, Commerzbank, and Deutsche Bank. These institutions recognize the transformative potential of the network and are positioning themselves to leverage its advantages.
One specific application being developed on Arc is a payment solution, which capitalizes on the general-purpose Economic OS. This utility aims to provide a seamless payment experience for individuals, businesses, and institutions alike. Furthermore, the platform is set to support agentic AI systems, paving the way for a future in which autonomous agents can send, exchange, and settle value on a global scale in real-time.
The collaborative efforts extend to a diverse range of technology and payment-focused firms, including global technology providers, fintech companies, cross-border payment solutions, retail payment networks, B2B payment platforms, remittance services, and e-commerce specialists. Noteworthy participants include Amazon Web Services, Brex, Careem, Catena Labs, and Cloudflare, showcasing the broad interest and application potential of Arc.
Arc is also geared towards providing robust infrastructure for issuers of fiat-based stablecoins, tokenized equities, credit funds, and money market funds. A key element of Arc’s roadmap includes the use of stablecoins for gas fees and the development of infrastructure for core stablecoin swaps and FX liquidity, thus enhancing transaction and operational efficiency within the ecosystem.
A diverse range of digital asset issuers from multiple geographies such as Australia, Brazil, Canada, Japan, Mexico, the Philippines, and South Korea are engaged with Arc’s testnet. Some notable stablecoins under consideration include:
- AUDF issued by Forte Securities
- BRLA issued by Avenia
- JPYC issued by JPYC Inc.
- KRW1 issued by BDACS
- MXNB issued by Juno (a Bitso company)
- PHPC issued by Coins.PH
- QCAD issued by Stablecorp
Circle actively seeks engagement from stablecoin issuers and stakeholders—including those from dollar, euro, and other digital asset markets—to migrate assets onto Arc, enhancing the platform’s comprehensive capability for future financial infrastructure.
