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Circle's ARC Blockchain Positions Itself as an Impartial Foundation for Worldwide Digital Finance

Circle's ARC Blockchain Positions Itself as an Impartial Foundation for Worldwide Digital Finance

Bitget-RWA2025/10/28 11:22
By:Bitget-RWA

- Circle launches ARC blockchain testnet with global institutions to build decentralized cross-border payment infrastructure. - Partnership with ClearBank enables MiCA-compliant stablecoin transfers across Europe, accelerating institutional blockchain adoption. - ARC's 60+ stakeholders include MetaMask and Chainlink, targeting multi-chain swaps and AI tools for decentralized finance. - Circle's 8.88% stock surge reflects market optimism despite regulatory challenges in balancing decentralization and compli

Circle Internet Financial, a stablecoin provider listed in New York, has started piloting its ARC blockchain in collaboration with a consortium of international organizations, marking a significant move to position the network as a core platform for digital financial services. The public testnet, which went live in October 2025, is intended to develop into a decentralized, community-led system supporting cross-border transactions and stablecoin settlements, as reported by

.

Circle's ARC Blockchain Positions Itself as an Impartial Foundation for Worldwide Digital Finance image 0

The ARC project, initially overseen by

, plans to shift from centralized oversight to a globally managed network, with governance shared by financial institutions, developers, and tech companies, according to Marketscreener. Notable aspects include expanding the validator network, implementing transparent governance, and enabling interoperability across multiple blockchains. Circle sees ARC as an impartial economic infrastructure layer, utilizing cryptographic verification and open-source standards to enable efficient transactions, Marketscreener added.

A significant alliance with ClearBank, a fintech bank based in the UK, highlights the project's appeal among institutions. ClearBank has incorporated

and EURC stablecoins into its payment infrastructure, allowing for quicker and more affordable cross-border payments throughout Europe, as detailed in . This partnership supports Europe's movement toward Markets in Crypto-Assets (MiCA)-approved stablecoins, which must be fully backed by reserves and subject to transparent audits. ClearBank's CEO called this development "a move toward an open, programmable financial ecosystem," highlighting the efficiency benefits for institutional users.

The ARC testnet has drawn more than 60 participants from the finance and technology sectors, including digital wallet providers like MetaMask and infrastructure firms such as

. The platform's future plans feature stablecoin-based swaps, foreign exchange liquidity, and AI-powered tools for developers, according to Marketscreener. The testnet has also welcomed stablecoin issuers from countries like Australia, Brazil, and South Korea, demonstrating its international approach to decentralized finance.

The project coincides with Europe's rapid adoption of blockchain technology. Over 60% of financial institutions in the EU intend to launch or expand blockchain payment trials by 2026, Yahoo Finance reported. This trend gives Circle an opportunity to benefit from regulatory certainty under MiCA, which requires stablecoin reserves and operational audits. Analysts point out that banks such as ING and Banco Santander have already experimented with tokenized deposits and blockchain-based bond settlements, suggesting a favorable environment for ARC's infrastructure.

Circle's shares (CRCL) have climbed 8.88% following the news, indicating investor confidence despite recent financial setbacks, including a -32% pretax profit margin, according to

. The stock's fluctuations reflect wider market uncertainty about stablecoin regulations, but the ARC testnet's growing institutional support points to a shift toward practical, utility-based expansion.

As ARC moves from its testnet phase to a full mainnet launch, Circle will face increased attention regarding its governance structure and adherence to U.S. and European regulations. The company's future success depends on its ability to balance decentralization with regulatory demands—a challenge also faced by others in the industry, such as The Graph, which recently updated its Horizon Testnet, according to Yahoo. For now, ARC's early backers, including ClearBank and JPYC Inc., reflect a rising belief that blockchain technology can transform international financial transactions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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