Circle has launched the public testnet for Arc, its new Layer 1 blockchain, with support from over 100 financial, tech, and payment institutions.
Key Takeaways
- Circle’s Arc blockchain testnet is now live, designed to support large-scale financial applications and enterprise use cases onchain.
- Over 100 major players including BlackRock, Visa, HSBC, AWS, and Coinbase are participating in testing.
- Arc offers dollar-based fees, sub-second finality, opt-in privacy, and integrates directly with Circle’s stablecoin platform.
- The testnet marks a step toward global tokenization, AI-enhanced development, and a decentralized governance model.
What Happened?
Circle Internet Group has launched the public testnet of Arc, a purpose-built Layer 1 blockchain aimed at powering financial services on the internet. The network is seeing broad early adoption from global institutions across capital markets, banking, fintech, and technology. Built around Circle’s USDC stablecoin, Arc aspires to become a global economic operating system, offering programmable infrastructure for payments, lending, asset issuance, and more.
Arc Public Testnet is now live.
— Arc (@arc) October 28, 2025
Open to developers and enterprises globally, Arc is the Economic OS for the internet that unites programmable money and onchain innovation with real-world economic activity.
Start building: https://t.co/RMjxJmjcsH
Learn more:… pic.twitter.com/OtGfrCIVdY
A New Layer 1 for Institutional Finance
Arc is designed to offer enterprise-grade blockchain infrastructure tailored for regulated financial markets. Circle’s vision is to build a high-performance, compliant, and scalable platform that enables real-time transactions and supports a broad array of financial use cases.
Key features of Arc include:
- Predictable dollar-based gas fees.
- Sub-second transaction finality.
- Optional privacy controls.
- Native support for stablecoin issuance and FX.
- Tight integration with Circle’s stablecoin and payments stack.
Arc is already being positioned as the backbone for global tokenized finance, covering cross-border payments, foreign exchange (FX), stablecoin swaps, and programmable settlement.
Backed by Global Giants
The testnet has attracted participation from over 100 firms, including:
Capital Markets and Banking:
- Apollo, BNY Mellon, Intercontinental Exchange (NYSE owner), State Street
- BlackRock, Deutsche Bank, HSBC, Goldman Sachs, Société Générale, Invesco, SBI Holdings, Standard Chartered
Payments and Technology:
- Visa, Mastercard, AWS, Cloudflare, Nuvei, Paysafe, Vodafone’s Pairpoint, Brex, FIS
Digital Assets and Exchanges:
- Coinbase, Kraken, Robinhood, Coincheck, Galaxy Digital, Wintermute
DeFi and Custody Infrastructure:
- Aave, Curve, Maple, Centrifuge, Fireblocks, BitGo, Copper, Zodia Custody
Developer Ecosystem:
- MetaMask, Ledger, Alchemy, LayerZero, Chainlink, Thirdweb, QuickNode
- AI tools by Anthropic to enhance dev experiences with Claude Agent SDK
Stablecoin Issuers on Testnet:
- AUDF (Forte Securities), BRLA (Avenia), JPYC (JPYC Inc.), KRW1 (BDACS), MXNB (Juno), PHPC (Coins.ph), QCAD (Stablecorp)
These participants span geographies and sectors, creating a diverse and collaborative testing environment that reflects Arc’s ambition to become the economic engine of the internet.
Real-World Tokenization is the Target
With the tokenization of real-world assets (RWA) gaining momentum, Arc offers the infrastructure needed for stablecoin-based settlements, programmable FX, and onchain asset trading. Institutions like BlackRock, Invesco, and HSBC are exploring how Arc could optimize fund operations, international payments, and capital flows.
Visa is particularly focused on how Arc might improve cross-border money movement, while Mastercard is working with Circle to develop payment experiences using both fiat and stablecoin rails.
Toward Decentralization and Community Governance
While Circle is currently leading the development, the long-term roadmap for Arc involves opening validator participation, implementing transparent governance, and transitioning to a community-driven model. This aligns with Circle’s goal of creating a neutral, cryptographically accountable public infrastructure for global finance.
CoinLaw’s Takeaway
In my experience watching crypto infrastructure evolve, this feels like one of the biggest moves yet to pull blockchain into the financial mainstream. What makes Arc different is not just the tech stack, but the incredible list of blue-chip partners testing it. If this gains traction, it could redefine how capital flows across borders, how institutions settle trades, and how stablecoins are used beyond crypto.
What really excites me is the focus on compliance and real-world utility. Arc is not trying to be another “Ethereum killer.” Instead, it’s aiming to be the financial plumbing for the internet. This kind of focus, with real companies testing real use cases, could finally bring the promise of crypto closer to everyday business and banking.
