Circle debuts public testnet of its payment-focused Arc chain – Details

**Key Takeaways**

– **What’s next for Arc as it rolls out public testnet?**
If the test is successful, the payment-focused chain could soon launch on the public mainnet for everyone.

– **Why is Arc’s progress important?**
It signals incoming shifts across the stablecoin payment ecosystem, raising questions about whether Ethereum will maintain its dominant position.

—

Circle, the issuer of the USDC stablecoin, is nearing the launch of its Arc chain—a global, payment-focused Layer 1 blockchain powered by digital dollars. On October 28, the firm announced the start of public testing for the chain alongside key design partners.

These partners include major banks, insurers, and asset managers such as BlackRock, HSBC, and Absa. According to Circle CEO Jeremy Allaire, these institutions serve billions of users and manage trillions of dollars in assets worldwide. He stated that Arc is designed to seamlessly connect local markets and developers to the global economy. Allaire dubbed Arc the “economic OS of the internet,” emphasizing its unique purpose as a platform built to bridge every local market to the global financial system.

### Stablecoin Payments Heat Up

Beyond its focus on global and agentic payments, Arc also aims to support on-chain foreign exchange (FX) and capital markets through tokenization. BlackRock’s Global Head of Digital Assets, Robert Mitchnick, highlighted FX and tokenization as key areas of interest in the project. He noted, “Exploring Arc will provide insight into how stablecoin-denominated settlement and on-chain FX capabilities might enable more efficient capital markets and unlock additional utility for on-chain assets.”

Other tech and finance giants such as Google, Stripe, and Tether have similar ambitions. For example, Tether’s Plasma [XPL] chain is already live and manages around $6 billion of stablecoin supply, making it the fifth-largest blockchain for digital dollars.

Google’s GUCL and Stripe’s Tempo chains are also expected to launch soon. Collectively, these new payment-focused chains could pose a challenge to Ethereum’s market share in stablecoin settlements, according to some analysts.

### Ethereum’s Position in Stablecoin Markets

Currently, out of the $305 billion total stablecoin supply, Ethereum controls $162 billion, accounting for approximately 53%. Tron (TRX) holds about a quarter of the total market share, with the remainder distributed among various other chains.

In terms of stablecoin transfers, Ethereum continues to hit record volumes every month. In fact, this October marked a milestone as the stablecoin transfer volume on Ethereum surpassed $2 trillion for the first time.

However, with the emergence of Arc, Plasma, Tempo, and Google’s payment chains, it remains to be seen whether Ethereum will maintain its dominance or see its market share erode in the evolving stablecoin ecosystem.

—

Stay tuned as this dynamic space unfolds, potentially reshaping the future of digital dollar payments and blockchain finance.
https://bitcoinethereumnews.com/tech/circle-debuts-public-testnet-of-its-payment-focused-arc-chain-details/?utm_source=rss&utm_medium=rss&utm_campaign=circle-debuts-public-testnet-of-its-payment-focused-arc-chain-details