Circle, the issuer of USDC, the world’s second-largest stablecoin by market capitalization, has unveiled the public testnet for its proprietary Layer 1 blockchain network, ‘Arc.’

The ambitious project has garnered significant backing, with over 100 global firms participating, including BlackRock, Visa, Goldman Sachs, Amazon Web Services (AWS), and Coinbase.

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Building an Economic Operating System

Circle announced the launch of the Arc testnet via a press release on Monday. Circle CEO Jeremy Allaire emphasized the network’s mission: “Arc provides an opportunity for all companies to build services atop enterprise-grade network infrastructure.” He stressed that the platform is designed to implement an “open, inclusive, and efficient global economic system on the internet.”

Circle released Arc as its recently introduced native blockchain. USDC traditionally relies on public chains like Ethereum for transactions. However, these networks often create high, volatile fees and unpredictable costs, which Arc aims to resolve.

Arc is unique because it utilizes USDC, the US dollar-pegged stablecoin, as its native gas token. This design offers predictable fees and an economically efficient cost structure. Circle plans for Arc to provide blockchain infrastructure that meets the stringent requirements of the financial sector, which existing public chains have struggled to satisfy.

Wall Street and Tech Giants Line Up

The Arc testnet allows experimentation with new functions in a secure environment using test assets. The system supports various financial applications, including lending, capital markets, foreign exchange, and global payments.

To achieve this, it seamlessly integrates with Circle’s existin

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Author: Paul Kim