Circle Unites Financial Giants on Arc Testnet to Shape the Future of Money Movement
Circle is witnessing a rapid consolidation of financial heavyweights around its Arc testnet, as competitors—from Goldman Sachs to Visa—begin aligning on a common technological standard for the future of money movement.
On October 28, USDC issuer Circle announced the public testnet launch of Arc, a Layer 1 blockchain designed to provide banks, market infrastructure providers, and global payment networks with a single programmable environment to test real-world asset settlement.
A Growing Network of Industry Leaders
Circle revealed that over 100 organizations across traditional finance, fintech, and digital asset markets have already connected to the network. Notable participants include State Street, Deutsche Bank, BlackRock, Goldman Sachs, and Visa.
The testnet offers a controlled environment where institutions that typically compete head-to-head can collaboratively evaluate shared technical rails built around faster settlement, predictable dollar-based fees, and privacy options tailored specifically for regulated markets.
“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. This geographic diversity highlights a defining strength of Arc: it’s purpose-built to connect every local market to the global economy,” said Circle CEO Jeremy Allaire.
Stewarding a Network Built to Outgrow Its Creator
While Circle currently manages the Arc testnet, its long-term vision is to transition the network into a distributed, community-driven system. The company outlined a phased progression that will expand validator participation beyond its own control and establish transparent governance frameworks.
The ultimate goal is for Arc to evolve into a shared, neutral layer of economic infrastructure for the internet—collectively operated by the very financial institutions, technology platforms, and developers now testing it.
A Broad and Diverse Coalition
Development on Arc is advancing alongside an unusually wide coalition of participants, extending well beyond household names.
Besides initial participants, the banking and asset management group includes international heavyweights such as Switzerland’s Bank Frick, Brazil’s BTG Pactual, the Middle East’s First Abu Dhabi Bank and Emirates NBD, and Africa’s Absa and FirstRand Bank.
The global payments and technology ecosystem is equally robust, featuring involvement from cloud infrastructure leaders Amazon Web Services and Cloudflare; fintech innovators like Brex and Ramp; and global payment processors including Fiserv, Nuvei, and dLocal.
A Multi-Currency Hub for Stablecoins
A key differentiator for Circle’s Arc is its immediate engagement with a global network of stablecoins. Issuers from Australia, Brazil, Japan, Mexico, the Philippines, South Korea, and Canada are integrating their fiat-pegged digital assets onto the testnet.
This positions Arc not just as a US dollar-centric chain but as a potential hub for a multi-currency, on-chain foreign exchange layer.
Comprehensive Developer and Market Infrastructure
The network is also bolstered by a full stack of developer and market infrastructure. Popular wallets like MetaMask and Ledger, developer tools from Alchemy and Chainlink, along with cross-chain bridges such as Wormhole, are integrating with Arc.
Liquidity support comes from a blend of decentralized exchanges like Uniswap and Curve, centralized exchanges including Coinbase and Kraken, and institutional market makers such as Galaxy Digital and Wintermute.
Testing Specific Institutional Use Cases
Robert Mitchnick, Global Head of Digital Assets at BlackRock, highlighted the firm’s exploration of how “stablecoin-denominated settlement and on-chain FX capabilities might enable more efficient capital markets.”
At Goldman Sachs, Mathew McDermott is focused on testing “programmable settlement and interoperable FX workflows” intended to enhance regulated markets.
For global payments, efficiency and connectivity are paramount. HSBC’s Manish Kohli shared that the bank is exploring how Arc can underpin new technical infrastructure for “more efficient and connected” global payments.
Similarly, Mastercard and Visa are evaluating the network’s potential to transform payment experiences. Mastercard’s Raj Dhamodharan emphasized work aimed at “enabling secure, simple payment experiences across both fiat and stablecoin rails.” Visa’s Cuy Sheffield noted ongoing exploration into how trusted payment networks can “connect to and help scale emerging on-chain infrastructure.”
Conclusion
Circle’s Arc testnet is rapidly becoming a collaborative hub where the world’s largest financial institutions and technology providers are working together to build a new, interoperable standard for asset settlement and cross-border payments. As the network evolves towards community governance, Arc aims to become a foundational layer that connects local markets to the global economy through programmable, efficient, and secure financial infrastructure.
https://crypto.news/circles-arc-testnet-brings-institutional-rivals-onto-one-ledger/
