Arc blockchain integrates Fireblocks for USDC access
Circle’s Arc blockchain has launched a built-in Fireblocks integration to provide banks and asset managers immediate institutional access to USDC. The Arc blockchain, a Layer 2 network optimized for stablecoin finance, will open its public testnet in autumn 2025, with full mainnet deployment by year-end. Fireblocks will deliver custodial services, compliance support and secure tokenization for over 2,400 institutional clients from day one, speeding USDC settlements and reducing operational friction. The partnership emerges amid growing US stablecoin regulatory clarity under the pending GENIUS Act. Circle also acquired Informal Systems’ Malachite consensus engine to power Arc’s protocol layer, embedding stablecoin features directly into network architecture. This early Fireblocks integration contrasts with platforms like Solana, which onboarded Fireblocks only after ecosystem maturity. The move positions Arc blockchain to challenge Tether’s USDT dominance, as USDC supply has surged 90% year-on-year to $61.3 bn. Circle’s Q2 revenue hit $658 m, up 53% year-on-year, following its $1.05 bn IPO. Traders should watch for increased USDC liquidity and institutional demand on Arc’s mainnet launch.
Bullish
The built-in Fireblocks integration on Arc blockchain lowers barriers for institutional USDC flows, boosting liquidity and demand from day one. In the short term, expect increased trading volume and tighter spreads for USDC as banks and asset managers deploy capital on Arc’s testnet and mainnet launches. In the long term, embedding stablecoin protocols and acquiring Malachite consensus enhances Arc’s reliability and scalability, reinforcing USDC’s market share against USDT. Regulatory clarity under the GENIUS Act further supports institutional confidence. Together, these factors are likely to drive sustained bullish momentum for USDC.