Circle to launch Arc blockchain with major financial institution backing

Fintech company Circle has announced the September 16 launch of Arc, a new blockchain designed specifically for stablecoin-based transactions, cross-border settlements, and tokenized real-world assets. Unlike general-purpose blockchains that require volatile native tokens for transaction fees, Arc utilizes Circle’s USDC stablecoin, providing price stability for institutional users.

Major financial institutions have been named as founding validators to secure the network. These include BlackRock, Visa, Mastercard, Standard Chartered, MoneyGram, Intercontinental Exchange (ICE), DTCC, Galaxy Digital, Global Payments, SBI Group, and Sumitomo Corporation.

BlackRock is expected to deploy its BUIDL fund on the network, utilizing USDC to enable institutional investors to subscribe, redeem, and deploy assets within a single on-chain environment. Circle describes Arc as an open network built to meet the security and compliance standards required for critical financial market infrastructure, offering faster and cheaper alternatives to traditional systems like SWIFT.