Circle Internet Group has launched the public testnet for Arc, a new open Layer-1 blockchain designed to function as an “Economic Operating System” for the internet. The network is built specifically for developers and enterprises, offering features like predictable dollar-based fees, sub-second transaction finality, and configurable privacy. These attributes are intended to support a wide range of real-world financial applications, from global payments and foreign exchange to lending and capital markets.

The testnet’s debut is marked by significant industry participation, with over one hundred companies already building, piloting, and integrating with the new network. Circle positions Arc as a purpose-built platform to connect local markets to the global economy and accelerate the shift of economic activity onto the blockchain.

Jeremy Allaire, Co-founder and CEO of Circle, noted the early momentum from companies that collectively reach billions of users and manage trillions in assets. “Arc presents the opportunity for every type of company to build on enterprise-grade network infrastructure,” he stated, highlighting a shared vision for a more open and efficient global economic system built on the internet.

A Play for Financial Infrastructure

Circle is positioning Arc as more than a generic platform for smart contracts. The company emphasizes its deterministic settlement and dollar-denominated fee structure, which are designed to reduce the volatility and operational friction often associated with blockchain technology. This architecture aims to make Arc particularly attractive to regulated firms and capital markets participants exploring tokenized assets and programmable settlement.

Early participants include major financial institutions and market infrastructure firms such as Apollo, BNY, Intercontinental Exchange, and State Street. The project has also drawn interest from global banking and asset management leaders, including BlackRock, Deutsche Bank, Goldman Sachs, and HSBC, signaling a strong focus on institutional use cases.

“Exploring Arc will provide insight into how stablecoin-denominated settlement and onchain FX capabilities might enable more efficient capital markets,” said Robert Mitchnick, Global Head of Digital Assets at BlackRock, underscoring the potential for the network to unlock new utility for on-chain assets.

Payments and Tech Giants Join the Fold

Payments and fintech applications are central to Arc’s value proposition. The network’s predictable fee model and rapid finality are tailored for low-friction merchant funding, multi-currency payouts, and real-time cross-border transactions. These features have attracted major technology and payments companies to the testnet, including Amazon Web Services, Cloudflare, Mastercard, and Visa, alongside numerous global fintechs.

“Circle’s launch of Arc is a meaningful step toward advancing programmable money and digital financial infrastructure,” said Raj Dhamodharan, an executive vice president at Mastercard. He added that Mastercard is exploring how to help shape Arc’s foundation to enable secure and simple payment experiences.

Phil Fayer, Chairman and CEO at Nuvei, also expressed interest in evaluating Arc’s capabilities. “We’re evaluating Arc’s capabilities—sub-second finality, predictable dollar-based fees, and a built-in FX layer—to see how they might support faster merchant funding and multi-currency onchain payouts,” he explained.

Building a Comprehensive On-Chain Ecosystem

Arc’s roadmap heavily incorporates stablecoins for transaction fees and liquidity. Circle is engaging with a diverse set of issuers to bring assets onto the network, including currency-pegged tokens from Australia, Brazil, Japan, Korea, and Mexico. The ecosystem is also being fortified with deep integrations from key developer and infrastructure providers. Wallets like MetaMask and Ledger, services such as Alchemy and Chainlink, and cross-chain bridges like Wormhole are among the testnet collaborators.

To ensure deep liquidity and multiple access points for trading and credit, the testnet is also attracting a mix of exchanges, market makers, and lending protocols. Participants include decentralized exchanges like Uniswap, centralized exchanges such as Coinbase and Kraken, and lending projects like Aave, creating a robust foundation for a thriving financial ecosystem.

From Centralized Steward to Community Governance

While Circle is overseeing Arc’s initial development, the public testnet marks the first step toward a distributed, community-driven governance model. The long-term plan involves expanding validator participation and establishing transparent frameworks that allow a broad set of institutions to shape the network’s future. Circle’s goal is to establish Arc as a neutral and auditable layer of economic infrastructure operated by globally distributed participants.

As the issuer of the USDC stablecoin, Circle views Arc as the next phase in its mission to make digital currencies and public blockchains accessible to enterprises. With the testnet now live, the industry will be watching closely to see if Arc’s promise of predictable, fast, and stable on-chain finance can translate into widespread, real-world adoption.