Circle Unveils On-Chain FX Engine to Expand Stablecoin Trading on Arc Network
Circle, the issuer of the USDC stablecoin, has launched Circle StableFX, an institutional-grade FX engine for 24/7 stablecoin currency trading with on-chain settlement on the Arc blockchain. It also announced Circle Partner Stablecoins, a program supporting regional stablecoins on Arc, aiming to unify infrastructure for global FX operations. Built on Arc’s Layer-1 blockchain, the initiative seeks to address inefficiencies in FX markets by enabling real-time cross-border exchange with reduced risks and costs. StableFX uses a request-for-quote model, on-chain settlement, and is currently live on the Arc testnet for approved institutions. Additionally, Circle Partner Stablecoins integrates non-USD-pegged stablecoins, including those tied to currencies like the Brazilian real, Australian dollar, and others, into Circle's network for broader utility. Circle's Q3 performance surpassed expectations, reporting $740M in revenue and growth in USDC’s market cap to $76B, although it remains behind Tether’s USDT.
Circle Launches Advanced FX Engine and Stablecoin Program
USDC stablecoin issuer Circle has launched Circle StableFX, an institutional-grade foreign exchange engine. This platform enables 24/7 stablecoin currency pair trading with on-chain settlement on its Arc blockchain network. Additionally, Circle announced the Circle Partner Stablecoins program to support select regional stablecoin deployments on Arc, aiming to create a unified global FX infrastructure.
Arc Blockchain Powers Dual Offerings
Both initiatives are built on Arc’s Layer-1 blockchain, which debuted its public testnet last month with over 100 participants, including BlackRock, Visa, Goldman Sachs, Deutsche Bank, Standard Chartered, BNY, State Street, ICE, AWS, Cloudflare, Mastercard, Coinbase, Kraken, Robinhood, and others. The platform targets inefficiencies in the foreign exchange market, which still relies on fragmented venues, prefunded accounts, and T+1 settlement cycles (where asset transfers occur the next business day).
Real-Time Settlement and Market Efficiency
By leveraging Arc’s programmable settlement infrastructure and stablecoin-based trading, Circle aims to enable real-time cross-border currency exchange while reducing counterparty risk and capital requirements. “With StableFX and Circle Partner Stablecoins, we’re connecting the world’s currencies on Arc,” said Circle Chief Product and Technology Officer Nikhil Chandhok.
Strong Financial Growth and Market Capitalization
The announcement follows Circle’s strong Q3 performance, with $740 million in revenue and reserve income. This exceeds analyst forecasts by 66% year-over-year. The market capitalization for USDC has grown from $61 billion during Circle’s June IPO to over $76 billion, as reported by CoinGecko. However, it still trails Tether’s USDT, which leads with $184 billion in market capitalization.
How StableFX Operates
StableFX uses a request-for-quote execution model, connecting institutions with multiple liquidity providers to offer competitive pricing with low slippage. The system supports on-chain settlement, where payment and delivery occur simultaneously, removing the risk of fund default. Its all-to-all model eliminates the need for bilateral agreements with multiple counterparties. StableFX is currently available for approved institutions on the Arc testnet and plans to launch its mainnet in 2026.
Arc Blockchain Features and Future Plans
The Arc blockchain uses USDC for transaction fees, supports sub-second finality, and offers opt-in privacy configurations tailored for institutional compliance. Circle CEO Jeremy Allaire highlighted the project’s “remarkable early momentum” during the Arc testnet launch. Circle’s Q3 report notes the company is exploring the possibility of launching a native Arc token to further enhance the network.
Regional Stablecoin Partnerships
The Circle Partner Stablecoins program targets non-USD-pegged stablecoin issuers that meet stringent technical, operational, and reserve management standards. Initial participants include:
- Avenia (Brazilian real)
- Forte (Australian dollar)
- JYPC (Japanese yen)
- Juno (Mexican peso)
- Busan Digital Asset Custody Services (South Korean won)
- Stablecorp (Canadian dollar)
- Luno (South African rand)
- Coins.ph (Philippine peso)
These stablecoins are integrated into Circle's Payments Network and StableFX, allowing expanded utility beyond domestic markets.