Circle, a USDC stablecoin issuer, has launched the public testnet of its Arc blockchain network

Circle Internet Group, issuer of USDC stablecoin, has launched the public testnet for its new Arc blockchain network. Arc aims to bring real-world financial activity on-chain by combining the predictability of fiat-based systems with the programmability of blockchain networks.

Circle described the Arc blockchain as the ‘Economic OS of the Internet’. Over 100 firms, including BlackRock, Visa, HSBC, Goldman Sachs, Amazon Web Services, and Mastercard, have participated in its testnet phase programme. The company’s massive customer base will allow Arc to connect every local market to the global economy.

Arc blockchain integrates DeFi and AI as Aave and Anthropic join the testnet

According to Circle’s press release, Arc is designed as an L1 blockchain network for payments, tokenized assets, and programmable finance. The network features dollar-based transaction fees, a short settlement period, and optional privacy features integrated with Circle’s products, such as USDC, EURC, CCTP, Wallet, and Gateway. The company noted that the upcoming integrations will include USYC, Mint, and Contracts.

Cuy Shiffield, Visa’s head of crypto, noted that Arc’s architecture, especially the stablecoin-based gas fees, may help scale on-chain payment infrastructure globally. The integration of Circle’s stablecoins into the Arc network will allow institutions to transact and settle using the digital U.S. dollar. This would allow for faster, low-cost cross-border transfers while maintaining compliance-grade credibility.

The testnet programme has also included participation from fintechs and digital asset platforms such as Coinbase, Kraken, Nuvei, Brex, and Coincheck. So far, Anthropic is already integrating AI-powered developer tools into Arc to potentially automate and optimize contract deployment, risk monitoring, and transaction routing.

DeFi protocols such as Aave, Curve, and Maple also participate in the testnet, suggesting that Arc could eventually serve as a regulation-compliant home for institutional DeFi. Circle further emphasized that regional stablecoin issuers, including Forte in Australia, Avenia in Brazil, Juno in Mexico, and Coins.ph in the Philippines, are evaluating Arc’s FX swap and multi-stablecoin infrastructure.

Circle plans to cede Arc’s operational control to a global network of stakeholders

Circle has laid a clear roadmap towards decentralization, envisioning Arc evolving into a community-driven, validator-operated ecosystem. It envisions Arc to be governed through a transparent and verifiable framework. The firm also plans to open validator participation and gradually cede operational control to a globally distributed network of stakeholders, including the same financial and tech partners currently testing the blockchain network.

The USDC stablecoin issuer revealed its long-term vision for its Arc platform: to become a shared, neutral layer of economic infrastructure for the internet, cryptographically accountable, and collectively operated. Following the GENIUS Act, signed into law in July, stablecoins have gained legal clarity in the U.S., helping push institutional confidence.

Circle Internet Group (CRCL) stock has jumped 3.47% over the past month. It trades at $138.43 and has a roughly $32 billion market cap. However, the stock was down 3.5% today at publication following the announcement of Arc’s testnet program.

Based on on-chain data, the current stablecoin market cap is above $308 billion, with Tether USDT leading at $183 billion and USDC at $75.7 billion. Citi analysts have estimated that the stablecoin market may surpass $4 trillion by 2030, while BCG and Ripple estimated that the tokenized assets could approach $19 trillion by 2030.