Circle has announced two innovative offerings: Circle StableFX, an institutional-grade engine for on-chain foreign exchange (FX), and Circle Partner Stablecoins, a program supporting select regional stablecoin issuers. These developments build on Circle's recently unveiled Arc Layer-1 blockchain, aiming to create a seamless, programmable infrastructure for global money movement.

The traditional FX market, despite its massive scale, relies on outdated systems like fragmented trading venues, prefunded accounts, and delayed T+1 settlements. Circle's vision addresses these inefficiencies by leveraging blockchain technology to enable instant, interoperable transactions. "With StableFX and Circle Partner Stablecoins, we’re connecting the world’s currencies on Arc," said Nikhil Chandhok, Circle's Chief Product and Technology Officer.

StableFX stands out as a stablecoin-powered FX engine designed for institutions. It allows approved users—who must undergo rigorous Know-Your-Business (KYB) and Anti-Money Laundering (AML) checks—to trade select stablecoin currency pairs around the clock. Key advantages include competitive pricing with low slippage through request-for-quote (RFQ) execution across multiple liquidity providers, atomic on-chain settlements that minimize counterparty risk, and capital-efficient models with programmable windows and netting.

The platform's all-to-all model streamlines operations by eliminating the need for bilateral agreements, making it easier for institutions to tap into global liquidity. Currently available on Arc's public testnet, StableFX is open for testing ahead of the blockchain's mainnet launch planned for 2026. Circle is inviting interested parties to experiment with the tool or join as design partners.

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https://www.circle.com/blog/introducing-circle-stablefx-and-circle-partner-stablecoins