Circle has launched its Arc blockchain as competition intensifies to build the preferred digital ledger for banks, asset managers and other large institutions. The public debut, held in New York, was backed by an inaugural group of validators including Visa, Mastercard and BlackRock.
The launch marks a shift in the blockchain market, where established networks such as Bitcoin, Ethereum, XRP and Solana have traditionally competed for developers, traders and retail users. A new contest is now emerging around infrastructure designed specifically for Wall Street.
Arc uses code compatible with the Ethereum Virtual Machine, an industry standard intended to make it easier for existing blockchain applications to operate on the network. Circle has also included privacy features aimed at allowing companies to protect sensitive information.
The chain has been designed with the development of “agentic commerce” in mind, while Circle has created 10 billion ARC tokens alongside its launch. The tokens could enable transactions on Arc without relying on USDC, the stablecoin closely associated with Circle and partly owned by Coinbase.
Institutional blockchain competition
Circle is not alone in seeking to win institutional customers. Canton, backed by JPMorgan, is also targeting the financial sector and counts Nasdaq, Goldman Sachs and BNP Paribas among its initial partners.
Stripe-backed Tempo is another prospective rival. Its links to a large network of merchants could give it an existing pool of potential users as it develops its blockchain offering.
Avalanche, an established blockchain that previously occupied a more specialised position, is also repositioning itself as a platform for businesses. Its new leadership recently held a two-day summit attended by figures from Wall Street and the cryptocurrency industry.
Robinhood’s new blockchain and Coinbase’s Base network are pursuing similar ambitions, despite each also having strong links to consumer-facing crypto activity. Robinhood’s chain has gained attention through activity involving memecoins while maintaining an interest in institutional use.
The eventual winner is uncertain. Networks supported by major financial institutions may benefit from those relationships, but could also face high marketing costs, expensive incentives and slower decision-making. More agile platforms operated by companies such as Robinhood, Coinbase or Avalanche could use that opportunity to gain ground.
The contest also raises questions about control. Decentralisation has long been a central principle of cryptocurrency and could give Ethereum an advantage as companies seek a network that is not controlled by any single corporate or Wall Street interest.
For now, the race to become the financial industry’s favoured blockchain remains wide open, with the leading network unlikely to be clear until at least next year.
