Circle Launches Arc Blockchain Testnet, Aims To Create The “Economic OS Of The Internet”
USD Coin (USDC) issuer Circle has announced the launch of its new layer-1 blockchain Arc, and has already lined up several partners to test the network.
In a blog post today, Circle said that it wants to position Arc as the “Economic OS of the internet.”
Deutsche Bank, Standard Chartered, WisdomTree, Goldman Sachs, and BlackRock are among firms onboard to test the network, Circle said.
“This roster of companies and projects engaging with us on Arc testnet lays a powerful foundation for a vibrant Arc ecosystem,” Circle said.
“Combined, these companies reach billions of users, move, exchange, and custody hundreds of trillions in assets and payments, and support local economies across Africa, the Americas, Asia, Europe and the Middle East,” said Circle CEO Jeremy Allaire.
With this testing phase, software developers will be able to deploy smart contracts, test core features, and access key resources, the stablecoin issuer said on X.
Some of Circle’s platform services, such as USDC, EURC, CCTP, Gateway and Wallet, are also available on the blockchain. The company said that it will soon add USYC, Mint, and Contracts.
Arc Will Eventually Become A Decentralized Ecosystem
Eventually, Circle wants its Arc blockchain to “evolve into a distributed, community-driven system.”
”Our long-term vision is for the network to be operated and governed by a broad, globally distributed set of participants, including many of the financial institutions, technology platforms, infrastructure providers, and protocol developers building on Arc who contribute to its growth and integrity,” the company said.
To achieve that vision, Circle said that it will expand validator participation, establish transparent and verifiable governance frameworks, as well as enable community participation in the network’s evolution.
“The goal for Arc is to become the de facto shared, neutral layer of economic infrastructure for the internet — open, cryptographically accountable, and collectively operated,” the firm said.
Circle Targeting Multi-Trillion-Dollar Stablecoin And Tokenization Market
The company’s testnet launch comes as the stablecoin market booms following US President Donald Trump’s signing of the GENIUS Act into law in July.
Stablecoin market cap (Source: DefiLlama)
Data from DefiLlama shows that the stablecoin market cap stands at over $308 billion.
Circle’s USDC is currently the second-largest stablecoin in the market with a market capitalization of $75.68 billion. Tether’s USDT is ranked top with a market cap of over $183 billion.
Arc’s testnet launch also comes as banks and asset managers begin to explore using blockchains for moving instruments such as bonds, funds and credit. This is part of the growing trend of tokenizing real-world assets (RWAs) on the blockchain.
Both the stablecoin market and tokenization fields are expected to undergo exponential growth in coming years. Citi has projected that the stablecoin market could soar to $4 trillion by the end of the decade.
Meanwhile, BCG and Ripple forecast in a joint report that the market for tokenized assets could be valued at nearly $19 trillion by 2033.
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