Circle Expands Blockchain Reach with Arc Testnet and Major Institutional Partners
- Circle begins Arc testnet with Visa and HSBC to enhance stablecoin-based settlements.
- Over 100 major firms join Arc to pilot tokenized finance and seamless payment systems.
- BlackRock calls Arc a key step toward efficient on-chain capital market operations.
Circle Internet Group (NYSE: CRCL), the company behind the $76 billion USDC stablecoin, has begun testing its payments-focused Arc blockchain, partnering with over 100 financial institutions. The testnet launch, confirmed Tuesday, marks a key milestone in Circle’s push to merge traditional finance with blockchain technology.
The Arc testnet includes major players such as Visa, HSBC, BlackRock, and Anthropic, allowing these firms to experiment with stablecoin settlements, programmable FX, and tokenized asset operations. CEO Jeremy Allaire said the initiative aims to link the global financial infrastructure. “Combined, these companies reach billions of users and support economies across every major region,” he stated.
Expanding Tokenized Finance Through Institutional Adoption
The launch of the Arc testnet comes at a time when major banks and other financial institutions are increasingly turning to blockchain technology to tokenize real-world assets (RWA), enabling on-chain asset transfers, fund settlements, and credit transactions. This market is expected to grow to $19 trillion in the next decade, according to predictions from BCG and Ripple.
Citi’s projection that stablecoins will surpass $4 trillion in market cap by the end of the decade is an indication of their rapid assimilation into the mass market. Therefore, Circle’s Arc might serve as a foundational infrastructure layer connecting the world of tokenized finance with old-school banking.
Arc’s early participants include Goldman Sachs, BNY Mellon, Société Générale, Standard Chartered, State Street, and Apollo Global Management. These firms are testing applications in tokenized lending, foreign exchange settlements, and cross-border capital movements.
Robert Mitchnick, BlackRock’s Global Head of Digital Assets, said Arc provides “insight into how stablecoin-denominated settlement and on-chain FX could enable more efficient capital markets.” His statement reflects the growing institutional push toward blockchain-driven transaction efficiency.
Related: Circle Unveils Refund Protocol to Tackle Blockchain Disputes
Arc’s Utility Across Global Payments and Capital Markets
Circle describes Arc as a foundational layer for financial services, spanning tokenized funds, cross-border payments, and programmable FX settlement. The blockchain supports U.S. dollar-based fees, sub-second settlement, and optional privacy controls, all integrated with Circle’s USDC stablecoin and payments network.
Visa is testing how stablecoin-backed infrastructure could speed up international money transfers, while Invesco explores tokenized fund operations. Similarly, Société Générale focuses on programmable transparency in cross-border flows, and HSBC evaluates Arc’s potential to accelerate global payment systems.
Outside capital markets, the testnet features collaboration with fintech leaders like Mastercard, Nuvei, Brex, Cloudflare, FIS, and dLocal. These firms are piloting Arc for merchant settlements, real-time programmable finance, and AI-driven autonomous payment agents, expanding blockchain utility beyond trading desks.
Circle, at long last, is going to move governance of Arc from being under the control of the company to that of the community. The company’s plan involves reducing the number of validators and establishing a transparent governance system that enables open operations. The company views Arc as a neutral economic backbone that will connect regulated institutions, fintech innovators, and decentralized networks. With Mastercard, BlackRock, and AWS already participating as giants, Arc’s testnet represents a major step towards mainstream on-chain finance. Could Arc be the infrastructure that finally brings together global payments and capital markets on one blockchain?
