Hibachi to build stablecoin FX exchange on Circle’s Layer-1 blockchain Arc

Decentralized perpetual futures exchange Hibachi said on the 11th that it is developing a new foreign-exchange (FX) exchange based on “Arc,” a Layer-1 blockchain network built by Circle.

Hibachi, a portfolio company of Circle Ventures, is participating in the “Arc Builders Fund,” which backs applications in the Arc ecosystem. Arc is an open Layer-1 network designed to expand on-chain economic activity and is currently in a public testnet phase.

Aligned with the growing use of stablecoins as tokenized cash for cross-border fund transfers, Hibachi plans to build an exchange that meets demand for stablecoin-based FX conversion and hedging. The exchange will support spot and derivatives trading for stablecoin FX pairs and plans to introduce know-your-customer (KYC) and anti-money-laundering (AML) screening frameworks tailored to institutional investors.

Chip Dempsey, Hibachi’s co-founder, said that participants in traditional FX markets have had to accept bank-provided prices because there is no central limit order book (CLOB). He added that crypto traders have deposited assets with centralized exchanges for liquidity, while decentralized exchange users have had to give up privacy due to the public nature of blockchains.

He said Hibachi will address these constraints by building a stablecoin FX exchange featuring low-latency matching, flexible custody options, privacy-preserving trading, and institutional-grade compliance.

Arc’s public testnet launched in October last year, with more than 100 companies participating across the broader financial ecosystem. A mainnet launch is planned for this year. In line with that timeline, Hibachi is expanding its engineering, compliance, and institutional support teams and accelerating development.