Circle Launches Arc Testnet with USDC, Visa, Mastercard & BlackRock Support
Circle has launched the Arc Testnet, a new Layer-1 blockchain using USDC as its native gas token to deliver fixed-dollar fees, sub-second finality and optional privacy controls. Over 100 institutions—including Visa, Mastercard, BlackRock, Goldman Sachs, State Street and Coinbase—are testing Arc Testnet for real-time settlements, cross-border payments, tokenized assets and trading. The network integrates with developer platforms like Alchemy, Chainlink and MetaMask, while early adopters JPYC, BRLA, MXNB and PHPC are issuing local stablecoins on Arc. South Korea’s BDACS will launch its KRW1 stablecoin on the network. Circle plans to transition Arc from centralized control to community governance, positioning it as an “Economic Operating System” for on-chain finance. Traders should monitor USDC liquidity flows, institutional adoption signals and on-chain metrics as Arc Testnet ramps up.
Bullish
The launch of Arc Testnet is likely bullish for USDC. By making USDC the native gas token and securing support from over 100 major institutions, Circle is driving higher on-chain demand and liquidity for the stablecoin. Short term, traders can watch spikes in USDC transaction volume and institutional flows as firms test real-time settlements and tokenized assets. Long term, transitioning to community governance and onboarding local stablecoins (JPYC, BRLA, MXNB, PHPC, KRW1) creates network effects that strengthen USDC’s role in global on-chain finance, reinforcing its utility and stability.