Circle launches Arc testnet with backing from BlackRock, Goldman Sachs, and Visa

Circle has rolled out the public testnet of its new blockchain network called Arc, marking a major milestone in the company’s effort to bridge traditional finance and blockchain technology.

The launch has attracted participation from over 100 major global institutions, including BlackRock, Goldman Sachs, and Visa, all of which are testing how blockchain can enhance financial infrastructure and efficiency.

Circle’s CEO, Jeremy Allaire, said the response from institutional players has been overwhelmingly positive, with many already building and experimenting on Arc. These participants represent billions of users and manage assets worth trillions of dollars worldwide, reflecting the scale of the network’s potential influence on the financial ecosystem.

Arc is designed as an enterprise-grade layer-1 blockchain network focused on predictable performance, compliance, and scalability. It supports Circle’s stablecoin, USDC, as its native currency, allowing transactions to be settled using U.S. dollar-based fees. The network offers sub-second transaction times and optional privacy settings, making it ideal for financial applications such as payments, lending, and capital markets.

One of Arc’s main goals is to enable faster and more efficient movement of money and assets across borders. By integrating USDC at its core, the network allows users and institutions to transact in a stable digital currency while benefiting from blockchain’s transparency and speed. This combination could significantly improve the way global payments and settlements are carried out.

The Arc testnet has drawn a diverse mix of participants, including global banks, asset managers, fintech companies, and blockchain developers. Their involvement highlights growing interest in real-world asset tokenization and on-chain financial services. The inclusion of top financial firms like Visa and Goldman Sachs also signals a broader shift toward blockchain-based systems within mainstream finance.

For Circle, Arc is more than just another blockchain, it represents a foundation for a new kind of financial infrastructure. The company describes it as an “economic operating system for the internet,” aiming to create a unified network where money, assets, and data can move securely and efficiently. The project also strengthens Circle’s position beyond being just a stablecoin issuer, expanding its reach into blockchain infrastructure and digital asset management.

While Arc remains in its testnet stage, Circle has plans to evolve it into a community-governed network. This transition would open up governance participation to developers, validators, and institutional users, promoting transparency and decentralization.

If fully realized, Arc could play a central role in redefining how financial institutions conduct transactions, manage assets, and settle payments using blockchain technology. With major industry players already participating, Circle’s Arc network is shaping up to be one of the most ambitious attempts yet to connect traditional finance with the digital economy.