Circle launches public testnet for payment-focused 'Arc' blockchain

Circle, issuer of the world's No. 2 stablecoin USDC, has launched the public testnet for Arc, a payment-focused blockchain. The test reportedly involved around 100 major financial institutions and global technology companies.

On the 28th (local time), CoinDesk reported that Circle said major institutions such as BlackRock, Visa, HSBC, and Anthropic are experimenting with the network via the Arc testnet. Jeremy Allaire, Circle's chief executive officer (CEO), said, "Participating companies process assets and payments worth hundreds of trillions of dollars for billions of users worldwide and make up the core infrastructure of the global economy."

Arc is designed as infrastructure to on-chain real-world financial activities such as tokenized asset payments, cross-border remittances, and foreign exchange (FX) settlement. The network offers a U.S. dollar-based fee system, payment speeds under one second, optional privacy features, and direct integration with Circle's stablecoin and payment systems.

Participants in the testnet include traditional financial firms such as State Street, Deutsche Bank, Invesco, and Société Générale; cryptocurrency exchanges like Coinbase and Kraken; and fintech and technology companies such as AWS, Mastercard, Nuvei, and Brex. HSBC is using Arc to improve the transparency and speed of international transfers, and BlackRock is using it to experiment with stablecoin-based capital markets settlements.

Circle said its goal is to develop Arc into a long-term decentralized community governance network. While Circle will lead initially, it plans to open validator participation and introduce a public governance framework to gradually decentralize the network.