Circle Internet Group, the world’s second-largest stablecoin issuer, has unveiled the public testnet for Arc, its open layer‑1 blockchain built to bring financial infrastructure fully on-chain. The rollout, described by Circle as the “Economic Operating System for the internet”, marks one of the company’s boldest moves yet as it transitions from stablecoin issuer to global infrastructure provider.
The launch includes participation from more than 100 major organizations across finance, payments, and technology, spanning banks, asset managers, and fintechs such as BlackRock, Goldman Sachs, Visa, Mastercard, State Street, Deutsche Bank, HSBC, and Apollo. These firms, together with leading digital asset custodians and developer platforms, are joining Arc’s early testnet phase to explore programmable money, tokenized markets, and institutional liquidity opportunities.
“With Arc’s public testnet, we’re seeing remarkable early momentum as leading companies, protocols, and projects begin to build and test,” said Jeremy Allaire, Circle’s co‑founder, chairman, and CEO on the company's announcement. “Combined, these companies reach billions of users, move, exchange, and custody hundreds of trillions in assets and payments.”
Fireblocks integration ensures institutional access from day one
According to their announcement on X, Fireblocks, the New York–based custody and tokenization platform that supports over 2,400 banks, asset managers, and fintechs, confirmed it will integrate Arc from launch. The early collaboration marks a notable first for the platform, which typically adds new blockchains only after their ecosystems mature.
Circle’s @Arc has landed on the Fireblocks Network 🔥
— Fireblocks (@FireblocksHQ) August 14, 2025
Where stablecoins and the global financial system move as one 🌎
Fireblocks expands its platform to support one of the most innovative chains for powering stablecoin finance — from secure custody and compliance to moving…
The decision underscores Arc’s institutional focus: by integrating custody, settlement, and compliance features directly into its architecture, Circle aims to ensure that institutional clients can participate from the outset. The testnet serves as a precursor to a full launch expected later this year.
Fireblocks’ early support is poised to streamline enterprise adoption by enabling secure key management, token operations, and settlement services for institutions using Circle’s USDC stablecoin as the network’s native gas token.
Arc’s design and purpose
Arc was developed to support what Circle calls the “next chapter of global financial infrastructure.” The network offers predictable dollar‑based fees, sub‑second finality, and configurable privacy settings, combining these features with Circle’s full‑stack payments and settlement technology.
Circle said Arc’s design aims to be an open, programmable platform capable of underpinning use cases across lending, capital markets, FX, and global payments. It also integrates directly with stablecoin and tokenized asset issuers from seven countries, including Japan’s JPYC, Brazil’s BRLA, Mexico’s MXNB, and the Philippines’ PHPC.
AI‑powered developer tools, built using Anthropic’s Claude Agent SDK, are also part of the testnet, giving developers access to intelligent frameworks for deployment and testing
Global engagement across financial sectors
Arc’s launch represents a sweeping collaborative effort across financial and technology institutions. Participants span multiple sectors:
- Capital markets: Apollo, BNY Mellon, Intercontinental Exchange, and State Street are exploring Arc’s use for tokenized settlement and liquidity.
- Banks and asset managers: Firms such as BlackRock, Goldman Sachs, HSBC, Invesco, and Standard Chartered are testing programmable settlement and custodial applications.
- Payments networks and fintechs: Mastercard, Visa, Nuvei, FIS, Brex, Paysafe, and Amazon Web Services are evaluating Arc’s role in real‑time global payments.
- Developers and infrastructure providers: Ecosystem participants include MetaMask, Fireblocks, Chainlink, Alchemy, LayerZero, and Wormhole.
According to Allaire, Arc’s architecture is designed to connect local markets across Africa, the Americas, Asia, Europe, and the Middle East, ensuring inclusion for both emerging economies and advanced financial systems.
Circle’s growth and market positioning
Arc’s release follows a transformative year for Circle. The company completed a $1.1 billion IPO on June 5, 2025, the first public offering by a stablecoin issuer. Its shares have since stabilized around $145 after peaking near $299 in July. In the second quarter, Circle reported $658 million in revenue, a 53% year‑over‑year increase, while USDC circulation climbed 90% to $61.3 billion, surpassing $65 billion in August.
The debut of Arc comes alongside the rollout of the Circle Payments Network and new U.S. regulatory clarity through the GENIUS Act, positioning Circle at the forefront of compliant stablecoin infrastructure.
Competing in a growing stablecoin market
CoinMarketCap shows the global stablecoin market has surged to around $277 billion, dominated by Tether, which holds more than 60% market share and reported $5.7 billion in second‑quarter profit. Circle’s share, roughly one‑quarter of the fiat‑backed market, is now supported by a diversified ecosystem spanning payments, custody, and tokenized capital markets through Arc.
By integrating Fireblocks and onboarding major financial institutions, Circle aims to strengthen USDC’s competitive position as the stablecoin economy accelerates under new regulatory frameworks and rising institutional demand.
“This is a foundational step toward building programmable, trusted financial infrastructure for the global economy,” said Allaire.
Anastasiia G
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