Circle, the second-largest stablecoin issuer globally, has introduced a public testnet for its Arc blockchain, which is envisioned to incorporate global financial systems onchain. This initiative has garnered interest from over 100 prominent firms in the finance sector, including giants like BlackRock, Goldman Sachs, Visa, and Mastercard.

“With Arc’s public testnet, we’re seeing remarkable early momentum as leading companies, protocols, and projects begin to build and test,” remarked Circle CEO Jeremy Allaire. “Combined, these companies reach billions of users, manage and exchange hundreds of trillions in assets and payments,” he added.

Arc aims to deliver predictable fees denominated in US dollars, ensuring quick transaction finality and offering optional privacy options, all while integrating closely with Circle’s USDC stablecoin and payment system. It is designed to support diverse financial applications, spanning lending, capital markets, and global payments, as well as foreign exchange (FX).

Major Players Engaging with Arc Testnet

The launch of the testnet is attracting major institutions, including Apollo, BNY Mellon, Intercontinental Exchange, and Deutsche Bank, along with global payment entities like Mastercard, FIS, Paysafe, and Nuvei.

Circle emphasizes that the architecture for Arc is crafted to connect local markets worldwide—from Africa to the Americas and Asia—providing world-class infrastructure for both traditional finance institutions and Web3 projects.

An essential aspect of Arc is its contribution to the stablecoin arena, backing fiat-pegged digital assets, tokenized funds, and FX liquidity. Seven countries have enrolled issuers into the testnet, which include Japan (JPYC), Brazil (BRLA), Mexico (MXNB), and the Philippines (PHPC).

The ecosystem of Arc goes beyond finance and incorporates leading developer tools and infrastructure providers such as MetaMask, Fireblocks, Chainlink, Alchemy, and LayerZero, as well as interoperability through cross-chain bridges like Wormhole and Stargate.

The integration of AI is also on the horizon, with the Claude Agent SDK from Anthropic poised to enhance developers’ experiences using AI-driven tools.

Allaire asserts that Arc is meant “to connect every local market to the global economy,” presenting an avenue for all types of companies to leverage this robust network infrastructure.

Looking forward, Circle intends to transition Arc into a community-governed network, broadening validator engagement and ensuring transparent governance. The company had initially proclaimed its plan for Arc’s launch in August, deciding it would utilize USDC as the native gas token for the platform.