Emre Yumlu 
Circle, the company behind the popular stablecoin USDC, has officially begun testing its new blockchain network, Arc, in collaboration with some of the world’s largest financial and technology institutions. The public testnet phase of Arc includes participants such as Goldman Sachs, BlackRock, Visa, HSBC, AWS, and Anthropic — marking a significant milestone in bridging traditional finance with blockchain innovation.
What Is Arc Blockchain?
Arc is designed to serve as a foundational layer for modern financial infrastructure, integrating seamlessly with Circle’s stablecoin and payment systems. According to Circle CEO Jeremy Allaire, the institutions participating in Arc “collectively reach billions of users, move and safeguard hundreds of trillions in assets and payments, and support economies across every continent.”
Built for efficiency and transparency, Arc promises features such as sub-second transaction finality, U.S. dollar-based fee structures, and optional privacy controls. The network aims to power applications ranging from tokenized funds and cross-border payments to real-time foreign exchange (FX) settlement.
Leading Financial and Tech Firms on Board
The Arc testnet has attracted a diverse set of global participants. Traditional finance powerhouses like State Street, Deutsche Bank, Invesco, and Société Générale are testing blockchain use cases alongside digital asset platforms such as Coinbase, Kraken, Aave, and Curve. Fintech firms Nuvei and Brex are evaluating Arc’s potential in merchant payments, while technology providers including AWS, Mastercard, and Cloudflare are exploring its infrastructure capabilities.
Visa is testing Arc to assess how stablecoin-backed payment infrastructure could accelerate cross-border money transfers. Robert Mitchnick, BlackRock’s Head of Digital Assets, said the firm is exploring Arc’s potential to unlock new efficiencies in stablecoin settlement and on-chain FX operations. Meanwhile, Invesco and Société Générale are focusing on tokenized fund management and programmable settlements, respectively. HSBC is examining how Arc could improve the transparency and speed of international payments.
The Expanding Role of Stablecoins and Tokenized Assets
The initiative comes as the global financial industry accelerates its adoption of blockchain-based assets. According to Citi, the stablecoin market could reach $4 trillion by 2030, while Boston Consulting Group and Ripple project that tokenized real-world assets (RWA) could approach $19 trillion by 2033.
Circle’s Arc network is positioned to become a key infrastructure layer in this transformation — enabling financial institutions to transact, settle, and tokenize assets with greater efficiency and transparency.
Circle Vision: A Decentralized Arc Ecosystem
Circle’s long-term plan is for Arc to evolve into a fully decentralized, community-governed network. While the company is currently leading the testnet and early development, it aims to open validator participation and establish public governance frameworks in the future.
If successful, Arc could serve as a pivotal bridge between traditional finance (TradFi) and decentralized finance (DeFi), redefining how global capital flows through both on-chain and off-chain ecosystems.
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