Circle (USDC Issuer) Launches Arc Public Testnet: Key Industry Partners Onboard

Circle, the company behind the USDC stablecoin, has introduced the public testnet for Arc, a Layer-1 blockchain network intended to support developers and businesses in moving real-world economic activities onto the blockchain. The launch occurred on October 28, 2025, as part of Circle's effort to establish Arc as a foundational platform for global financial operations, which the company describes as an economic operating system for the internet. 

This development comes at a time when blockchain technology is increasingly integrating with traditional finance, and Arc seeks to address needs for scalability, security, and interoperability in handling transactions involving stablecoins and tokenized assets.

Arc's Purpose and Design

Arc operates as an open Layer-1 blockchain, built to handle the demands of enterprise-level applications while connecting local markets to the broader global economy. Unlike some existing networks, it emphasizes features like deterministic sub-second finality through its Malachite consensus engine, which ensures quick and reliable transaction settlements. 

Developers can expect low and predictable fees, initially using USDC for gas payments, with plans to expand support to other stablecoins. This setup not only reduces costs but also aligns with Circle's stablecoin ecosystem, allowing seamless integration for payments, foreign exchange, and liquidity management.

The network's architecture draws from Circle's experience in issuing regulated stablecoins, positioning Arc as a base for tokenizing assets such as equities, credit instruments, and money market funds. For instance, it includes native infrastructure for stablecoin swaps and cross-stablecoin liquidity, which could simplify operations for issuers and users alike. 

Circle's CEO, Jeremy Allaire, highlighted in a statement that the testnet represents a step toward a more inclusive global economic system built directly on the internet, where companies of all sizes can participate on equal footing. 

Building an Extensive Ecosystem

From the outset, Arc's testnet has attracted participation from a diverse group of organizations spanning finance, technology, and payments sectors. More than 100 entities are involved, collectively managing vast assets and transaction volumes worldwide. Notable participants include major banks like BlackRock, HSBC, Deutsche Bank, Goldman Sachs, Standard Chartered, and Société Générale, which are exploring opportunities in lending, asset issuance, and capital markets on the network. Asset managers such as Invesco and WisdomTree are also testing tokenized funds, while insurers like Kyobo Life examine potential applications in their operations.

In the payments and fintech space, companies like Visa, Mastercard, Amazon Web Services, Brex, Nuvei, and dLocal are engaging to enhance cross-border and retail payment capabilities. This collaboration extends to regional stablecoin issuers, including Forte for AUDF (Australian dollar), Avenia for BRLA (Brazilian real), JPYC Inc. for JPYC (Japanese yen), and Coins.PH for PHPC (Philippine peso). Digital asset exchanges and protocols, including Coinbase, Kraken, Uniswap Labs, Aave, and Chainlink, provide liquidity, cross-chain connectivity, and developer tools, ensuring a robust starting point for the ecosystem.

These partnerships reflect a shared interest in upgrading financial infrastructure. For example, Chainlink's integration offers cross-chain interoperability and compliance features, which developers can use to build secure applications that meet regulatory standards across jurisdictions. The breadth of these collaborators suggests that Arc could facilitate real-time settlements and autonomous agent-driven transactions in the future, although the testnet phase focuses on testing and refinement.

Tools and Opportunities for Developers

Developers interested in Arc can access a range of resources right away to start building and testing. The public testnet provides documentation, RPC endpoints, and a block explorer for exploring transactions and deploying smart contracts. Key integrations include Circle's stablecoins like USDC and EURC, with upcoming support for tokenized funds such as USYC and cross-chain protocols like CCTP. 

To get started, developers can visit the Arc documentation site to set up nodes, run workloads, and provide feedback through channels like Discord. Tools from partners like Alchemy, thirdweb, and Anthropic enhance the experience—Anthropic, for one, offers AI-powered coding assistance via Claude. Infrastructure providers such as Quicknode and Blockdaemon ensure network reliability, while wallets like MetaMask and Ledger enable easy access on desktop and mobile. For those testing cross-chain transfers, bridges from Wormhole and LayerZero are available. Circle encourages detailed input on usability to improve the platform before the mainnet launch planned for 2026.

Path to Mainnet and Governance

Looking ahead, Circle plans to evolve Arc into a decentralized, community-governed network. While the company currently oversees development, the roadmap includes expanding validator roles to include financial institutions and protocol developers. Upcoming features may encompass enhanced privacy options for confidential balances, additional stablecoin support for gas fees, and native foreign exchange functionalities.

Circle anticipates shipping more integrations, such as paymasters for EURC and liquidity services, in the coming months. By 2026, the mainnet could support a wide array of applications, from payments for autonomous AI systems to efficient capital markets.

Sources:

• _{Arc Public Testnet Launch Announcement (Circle Blog): https://www.arc.network/blog/circle-launches-arc-public-testnet} 
• _{Jeremy Allaire’s Statement on X: https://x.com/jerallaire/status/1983147002008396212} 
• _{Arc Network Official Website: https://www.arc.network/}