Circle Accelerates Arc Rollout to Capture Institutional Stablecoin Settlement

Highlights:

• Circle has accelerated the Arc rollout as the network moves closer to production after testing.
• Arc testnet data shows fast settlement speeds and growing use by banks, asset managers, and payment firms.
• Payments and cross-chain infrastructure have expanded as institutions adopt stablecoin settlement at scale.

Circle has continued moving Arc toward production following sustained activity on its public testnet. The testnet launched in October 2025 and has since processed more than 150 million transactions. Nearly 1.5 million wallets have interacted with the network during this period. Average settlement times have remained around 0.5 seconds, according to company updates. The blockchain uses USDC as its native gas token for transaction fees.

🚨 CIRCLE LAUNCHES "ARC" BLOCKCHAIN TO REVOLUTIONIZE BANKING SETTLEMENTS 🚨

Circle is going on the offensive! The company behind USDC has unveiled its 2026 roadmap, putting its new Layer-1 blockchain, Arc, at the center of a plan to become the "Economic Operating System" for… pic.twitter.com/u0Mi9nKh6m

— Giannis Andreou (@gandreou007) January 30, 2026

Circle has said Arc was designed specifically for regulated financial operations. The company has also worked on deterministic finality to facilitate predictable settlements. Executives have also highlighted that the development of governance is a requirement prior to production launch. Participation of the validators is minimal upon testing, and the intent is to increase distribution as time goes on. According to the officials, these measures are intended to meet institutional risk and compliance standards.

Circle has attracted institutional participation during Arc’s early testing phase. More than 100 institutions joined the network within its first 90 days. Participants include asset managers, banks, and payment firms testing settlement workflows. Company officials said feedback from these users has informed technical adjustments. The activity has continued as the network remains in testnet.

We’re building toward an internet financial system through Arc, USDC, Circle Payments Network, and our interoperability services that connect them.
The goal is simple: make money movement and value exchange efficient, programmable, and accessible worldwide. Read our product…

— Nikhil Chandhok (@chandhok) January 29, 2026

Payments And Cross-Chain Infrastructure Expand for Institutional Stablecoin Use

Circle has expanded its payment network alongside Arc development. The network launched in May 2025 and has since onboarded 29 financial institutions. Another 55 institutions remain under eligibility review. More than 500 additional firms sit in the onboarding pipeline, according to company figures. The network currently operates across eight countries.

Circle has reported $3.4 billion in annualized transaction volume through the payments network. Partners include Binance, Corpay, FIS, Fiserv, and OKX. The network supports stablecoin-based treasury flows, merchant payments, and cross-border settlement. Company officials said institutions prefer adopting ready infrastructure rather than building internal systems.

Circle has incorporated Arc into its Cross-Chain Transfer Protocol. The protocol links 19 blockchains, and the cumulative volume processed was $126 billion as of December 2025. The company also launched Gateway to consolidate USDC balances over supported networks.

Circle has released StableFX on the Arc testnet. The product allows constant institutional foreign exchange trading with stablecoins. Company reports indicated that StableFX aims at firms that demand 24-hour FX access without settlement delays. Asset support is growing throughout USDC, EURC, USYC, and partner-launched stablecoins. These products are still in testing or early deployment.

Circle Accelerates Arc Rollout Amid Competitive Stablecoin Pressure

Circle has operated in a stablecoin market dominated by USDT. Market data indicate that USDT dominates approximately 60% of the overall stablecoin supply. USDC commands about 24% of the market despite the recent growth.

Circle has been under stress with Tether announcing revenue of $5.2 billion last year. Tether also revealed ownership of approximately 140 tons of gold worth around $23 billion. In the United States, the company has initiated USAT within the GENIUS Act framework.

Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀

Read more: https://t.co/rIMQTQ7ipX

— Tether (@tether) January 27, 2026

Circle has experienced greater institutional settlement activity associated with the USDC. Visa announced that U.S. financial institutions can settle transactions using USDC on Solana. Cross River Bank and Lead Bank have already begun settling transactions through the system. Visa has also said it plans to operate a validator node after Arc launches. Company officials described the move as part of infrastructure collaboration.