Circle expands Arc ecosystem with onchain FX engine and multi-currency stablecoin partner program

Circle is expanding its new Arc Layer 1 blockchain ecosystem with two features designed to modernize the global foreign exchange market — a real-time onchain FX engine and multi-currency stablecoin interoperability.

Circle launched the public testnet for its stablecoin-centric chain on Oct. 28, with participation from more than 100 marquee names in traditional finance and crypto, focused on capital markets, banking, payments, and digital assets.

In a statement shared with The Block, the company said the StableFX and Circle Partner Stablecoins upgrades aim to bring programmability and continuous settlement to an "outdated" FX system long reliant on fragmented venues, prefunded accounts, and T+1 settlement cycles (settling one business day after the trade date).

At the center of the announcement is Circle's new FX engine, StableFX, which allows approved institutions that have completed comprehensive Know-Your-Business and Anti-Money Laundering verifications to access and settle select stablecoin currency pairs 24/7 in a "compliance-centric" trading environment.

The system operates onchain, designed to offer competitive pricing with low slippage via request-for-quote execution across multiple liquidity providers, reduced counterparty risk, and atomic settlement — where both payment and delivery occur simultaneously — according to the firm.

"StableFX's all-to-all model eliminates the need for bilateral agreements with multiple counterparties, simplifying onboarding and accelerating access to deep, global liquidity." Circle said.

The service is currently live on Arc's testnet, ahead of the blockchain’s planned mainnet launch next year.

Expanding Arc's reach through regional stablecoin integration

The firm also introduced its Circle Partner Stablecoins program to support select non-USD-pegged stablecoins deploying on Arc. Members must meet eligibility standards around technology, reserves, and risk management, gaining real-world payments, remittance, and FX flow integration through Circle Payments Network (CPN) and StableFX.

Initial participants include Avenia (BRLA), Forte (AUDF), JYPC (JYPC), Juno (MXNB), Busan Digital Asset Custody Services (KRW1), Stablecorp (QCAD), Luno (ZARU), and Coins.ph (PHPC). Circle said these collaborations will enhance liquidity and interoperability with USDC while expanding use cases for regional currencies.

"Together, these initiatives form a unified stack to drive FX utility: Arc provides the programmable settlement infrastructure that finalizes transactions securely in real time, Circle Partner Stablecoins onboards the select regional stablecoins, and StableFX delivers the technology that connects counterparties and liquidity providers," Circle said.

"With StableFX and Circle Partner Stablecoins, we're connecting the world's currencies on Arc," Circle Chief Product and Technology Officer Nikhil Chandhok added.

Earlier on Thursday, analysts at research and brokerage firm Bernstein said that while Circle's stock is currently "fighting a narrative battle against the bears," evidence suggests the stablecoin issuer's fundamentals remain robust amid strong third-quarter earnings.