Circle, the issuer of the USDC stablecoin has launched the public testnet of Arc, an open-source Layer-1 blockchain specifically engineered for stablecoin payments, foreign exchange (FX), and capital markets applications.

This EVM-compatible network emphasizes institutional-grade features like dollar-denominated transaction fees through Paymaster (enabling gasless experiences for users), sub-second deterministic finality for reliable settlements, auditable privacy controls to balance confidentiality with regulatory compliance, and seamless integration with Circle's ecosystem, including the Cross-Chain Transfer Protocol (CCTP) for efficient USDC transfers across chains.

This collaboration highlights mainstream finance's growing experimentation with dedicated "rails" for tokenized cash, FX swaps, securities settlement, and even programmable payments, moving beyond general-purpose networks like Ethereum or Solana. For instance, BlackRock's involvement aligns with its BUIDL tokenized fund (which has grown to over $500 million in assets) and broader tokenization initiatives, while Visa and Mastercard's participation could accelerate real-world payment integrations.

The launch positions Circle for full vertical integration: from USDC issuance and custody to on-chain settlement and compliance tools. This could significantly reduce costs (e.g., by minimizing intermediary fees in cross-border transactions), operational risks (through atomic settlements), and friction for enterprise users, potentially handling trillions in annualized value as tokenization scales.

Read More:
https://www.arc.network/blog/circle-launches-arc-public-testnet