Circle Launches Arc Blockchain on Testnet

Circle, the company behind the popular USDC stablecoin, has launched the public testnet of its Arc blockchain. According to the announcement, it marks a major step in connecting traditional finance with blockchain technology. 

Notably, over 100 global financial institutions and tech companies are part of this milestone. Some of which include BlackRock, Visa, HSBC, Amazon Web Services (AWS), and others.

A New Blockchain Built for Stablecoin Payments

It is worth noting that this is a new Layer-1 blockchain designed for stablecoin payments, currency exchange, and other financial market uses. The Arc blockchain aims to bring real-world financial activities onto the blockchain, combining strong compliance with the speed and transparency of blockchain. 

Circle says that Arc introduces new features such as U.S. dollar fees, optional privacy controls, and quick transaction settlements. The company also described Arc as an open, EVM-compatible blockchain built to ensure stablecoin transactions are fast and more efficient. 

Arc also has a built-in tool that allows users to switch currencies with ease. It can complete transactions in less than a second. Businesses can also choose privacy settings to ensure secure and confidential operations. Also, Arc will be fully integrated into its existing platform and will work seamlessly with partner blockchains already supported by Circle.

Circle Reports Strong Growth and Strategic Moves

Recall that the stablecoin issuer first introduced Circle Arc in August during its Q2 earnings report. The announcement came as Circle reported a successful quarter following its Initial Public Offering (IPO) event in June, which raised 1.2 billion. Reportedly, USDC circulation grew 90% in one year, reaching $61.3 billion by the end of Q2.

By August, it had risen further to $65.2 billion. Revenue and reserve income also went up 53% to $658 million. Still, the company reported a net loss of $482 million, mostly because of $591 million in non-cash costs linked to its IPO. Another $167 million came from the higher value of its convertible debt as CRCL’s stock price rose.

Meanwhile, Circle also highlighted several recent developments. It said the recent passage of the GENIUS Act by the U.S. government formalizes its long-standing commitment to regulatory compliance. In July, Circle rolled out Circle Gateway, allowing users to maintain unified USDC balances for instant cross-chain liquidity.

Circle to Expand USDC Stablecoin

Last month, Circle’s centure capital arm joined forces with crypto infrastructure firm Crossmint to bring the USDC stablecoin to more blockchains. Crossmint said it will integrate Crossmint Wallets and APIs with Circle’s USDC to deliver near-instant payments and seamless onramps.

The goal is to create a financial ecosystem where “money moves near-instant, access is global, and systems are built for both humans and machines,” the company explained. With this partnership, the two firms aim to bring stable, borderless digital dollars to billions of users.