Circle launches testnet for stablecoin-optimized Arc blockchain

USDC issuer Circle has launched a public testnet for Arc, its blockchain optimized for stablecoins, CoinDesk reported. The chain is specialized for USDC-based payments and transfers, offering features such as sub-one-second transaction times and optional privacy controls. More than 100 partners are participating in the testnet, including traditional financial firms like State Street, Deutsche Bank, Invesco, Societe Generale, Visa, and BlackRock, as well as crypto companies such as Coinbase and Kraken. These firms are reportedly testing Arc for use cases including stablecoin transfers, on-chain foreign exchange (FX) trading, tokenized funds, and AI-based development tools. Circle aims to develop Arc as a decentralized project and evolve it into a system where governance is led by the community.