Circle Launches Arc Public Testnet
Circle, the company behind the USDC stablecoin, has launched the public testnet for its new Layer-1 blockchain, Arc. The testnet allows developers and financial institutions to build and test applications before the mainnet launch.
Arc is designed to support real economic activities like payments, lending, asset settlement, and trading. Circle calls Arc an “economic operating system” for the internet.
Unlike many blockchains, Arc uses predictable, dollar-based transaction fees. It also offers fast settlement times, making it attractive for financial institutions.
Testnet Participants
Over 100 companies from banking, fintech, payments, and infrastructure sectors have joined the Arc testnet. Participants include BlackRock, HSBC, State Street, Deutsche Bank, AWS, and Coinbase.
Other participants are asset managers such as Invesco and payment networks including Mastercard and Visa. They are testing tokenized funds and cross-border settlements on Arc.
Regional stablecoin issuers from Australia (AUDF), Brazil (BRLA), Mexico (MXNB), and the Philippines (PHPC) are exploring stablecoin swaps and cross-border forex transfers using the testnet.
Circle CEO Jeremy Allaire said, “Arc presents the opportunity for every type of company to build on enterprise-grade network infrastructure—advancing a shared vision that a more open, inclusive, and efficient global economic system can be built natively on the internet.”
Developer and Ecosystem Support
Arc is gaining support from developer and infrastructure providers. Wallets like MetaMask, Ledger, and Fireblocks are integrating Arc access. Development platforms Alchemy and Thirdweb support builders on the network.
Cross-chain services such as Wormhole and Stargate connect Arc with other blockchains. By incorporating Chainlink’s CCIP, Data Feeds, Data Streams, and Automated Compliance Engine (ACE), Arc enables advanced cross-chain applications that adhere to regulations and ensure security.
Circle plans to decentralize governance over time. Validators and ecosystem participants will gradually take on network operation responsibilities.
On the market side, platforms including Uniswap, Aave, Coinbase, Kraken, and Wintermute provide trading and liquidity support. Custodians like BitGo and Copper assist with secure asset custody.
Payments are expected to be among Arc’s first use cases. Companies such as Visa, Mastercard, AWS, Cloudflare, Nuvei, Paysafe, Pairpoint (Vodafone), dLocal, and Yellow Card are exploring Arc for faster, cheaper cross-border payments.
For more details, see the official Circle announcement.
