Circle, the company that makes the USDC stablecoin, said that its new layer-1 blockchain Arc will launch by the end of the year. It will start with direct integration for institutional access through Fireblocks. As Circle works harder to become the leader in the growing stablecoin market, Arc will give banks, asset managers, and fintech companies strong compliance, custody, and settlement tools.
Institutional Integration and Technical Advancements
Arc will offer “day one” institutional support through Fireblocks, a digital asset platform that serves over 2,400 financial institutions and supports more than 120 blockchains. This is different from other new blockchains. This integration before launch is a big step that will make sure that top banks and asset managers can easily access Arc as soon as it goes live. On the other hand, Fireblocks only added other big chains like Solana after they had a lot of users, after they launched.
Circle calls Arc “purpose-built for stablecoin finance,” and it will have tools made just for privacy, quick settlements, and compliance. This fall, the network will launch a public testnet, which will let a lot of developers and businesses use it before it goes into full production. Circle is also building up its payment system, such as by adding the Circle Payments Network to Arc’s blockchain ecosystem.
As competition heats up, the stablecoin sector grows.
Circle’s strategic moves come at a time when the stablecoin market is worth about $277 billion, and there is more competition. Circle’s USDC makes up about 25% of the fiat-backed sector, but Tether has about 60% of the market and made $4.9 billion in profit in the second quarter, mostly from short-term US Treasury holdings. Tether now owns more Treasury bonds than some countries, showing how non-sovereign entities are becoming more important in global debt markets.
Circle’s numbers show that it is growing quickly. Its revenue in the second quarter rose 53% from the same time last year to $658 million, and the number of USDC coins in circulation rose 90%, reaching $65 billion in early August. The GENIUS Act, which was signed in July, made the rules clearer, which speeds up the adoption of Circle and Tether and the competition between them to become the most popular company in the industry.
Circle’s Arc blockchain is ready to set a new standard for institutional stablecoin finance. It will give top financial institutions instant access to cutting-edge technical innovation. Circle wants to change the way institutions use and adopt stablecoins for global transactions and asset management. They plan to do this by integrating Fireblocks, adding more payment options, and seeing strong market growth.
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