Chainfeeds Summary:
As global finance gradually moves onto the blockchain, we believe that a few blockchains will collectively become the underlying infrastructure of the new financial system. Arc has a strong chance of becoming one of them.
Article source:
https://x.com/alive_eth/status/2053834920519217484
Article Author:
Ali Yahya
Opinion:
Ali Yahya: For most of history, money transfers have been slow, expensive, and complex. Stablecoins, initially just part of the crypto-native transaction infrastructure, have evolved into a tool that allows individuals and businesses to transfer billions of dollars globally for less than a cent and less than a second. Last year alone, stablecoin transaction volume reached $9 trillion, reaching the same scale as Visa and PayPal. The dollar-denominated stablecoin supply now exceeds $270 billion. Stablecoins are going mainstream, making them one of the most important tools in the global financial system. Cross-border money flows, business-to-business (B2B) payments, and foreign exchange (FX) transactions are contributing an increasingly larger share of transaction volume. Stablecoins are gradually upgrading traditional financial infrastructure that has long been slow and expensive. At the heart of this transformation is Circle and its USDC stablecoin. Currently, approximately $79 billion in USDC is circulating across more than 30 blockchains, and most cross-chain stablecoin transfers are completed through Circle's CCTP (Cross-Chain Transfer Protocol). The relationships Circle has built with banks, payment networks, and corporate finance teams are making USDC an increasingly important unit of account in the traditional financial system, even in areas where crypto hasn't yet truly penetrated. USDC has become a "trusted digital dollar" in the eyes of banks, businesses, and financial institutions, offering the speed of a crypto network while avoiding the volatility inherent in crypto assets. But problems remain. The internet infrastructure that USDC runs on today wasn't originally designed for large institutions. It was initially built for individual users and crypto natives. This is why Arc exists. Arc is designed as a new economic operating system. It's an open, EVM-compatible network that allows finance teams of large global corporations to budget and manage funds directly in US dollars based on their own balance sheets. Arc's settlement time is less than a second, providing the necessary determinism for clearing systems. Its privacy features are configurable, allowing institutions to hide transaction details while granting view-key access to auditors and regulators. Arc's validators are not anonymous nodes but known institutional operators with contractual obligations. Cross-chain fund flows are completed through Circle's CCTP. Arc will also have a unique advantage upon launch: USDC's existing market dominance, and Circle's own products being natively deployed on Arc from day one. Furthermore, over 200 partners participated in Arc's design, including Goldman Sachs, Visa, and Mastercard, covering multiple sectors such as DeFi, payments, fintech, and asset management.
Content source 
