Circle Unveils On-Chain FX Engine to Expand Stablecoin Trading on Arc Network

Core Insights - Circle has launched Circle StableFX, an institutional-grade foreign exchange engine for 24/7 stablecoin currency pair trading with on-chain settlement on its Arc blockchain network [1] - The company also introduced Circle Partner Stablecoins to support regional stablecoin deployments, aiming to create a unified infrastructure for global FX activity [1] Group 1: Product Offerings - Circle StableFX is designed to address inefficiencies in the foreign exchange market, which currently operates on fragmented venues and T+1 settlement cycles [2][3] - The platform utilizes a request-for-quote execution model that connects institutions with multiple liquidity providers, offering competitive pricing and low slippage [6] - On-chain settlement in StableFX allows simultaneous payment and delivery, reducing counterparty risk [6] Group 2: Market Performance - Circle reported strong third-quarter performance with $740 million in revenue and reserve income, exceeding analyst forecasts by 66% year over year [4] - The market capitalization of USDC has increased from $61 billion at Circle's June IPO to over $76 billion, although it still lags behind Tether's USDT, which is at $184 billion [5] Group 3: Testnet and Future Plans - The Arc Layer-1 blockchain's public testnet went live with over 100 participants, including major financial institutions like BlackRock and Visa [2] - StableFX is currently available for approved institutions that have completed necessary verifications, ahead of Arc's planned mainnet launch in 2026 [7]