The new Circle blockchain has received support from custodian Fireblocks.

# The new Circle blockchain has received support from the custodian Fireblocks.

The issuing company of USDC, Circle, is integrating its own Layer 1 network, Arc, with the institutional platform Fireblocks.

Circle’s @Arc has landed on the Fireblocks Network 🔥

Where stablecoins and the global financial system move as one 🌎

Fireblocks expands its platform to support one of the most innovative chains for powering stablecoin finance — from secure custody and compliance to moving…

— Fireblocks (@FireblocksHQ) August 14, 2025

The platform will provide custodial support and compliance for its clients from day one of the blockchain launch. Fireblocks serves over 2400 banks, asset managers, and fintech companies.

Blockchain is focused on finance based on "stablecoins": payments, currency exchange, and capital markets. The public testnet Arc will be launched in the fall, and the full network release is scheduled for the end of the year.

Such early integration sparked discussions on X. For example, the Solana blockchain was added to Fireblocks only at the end of 2021, nearly two years after its launch. Fireblocks clients will have access to Arc from day one.

Plus one deal

On August 18, Circle acquired the Malachite consensus engine from Informal Systems. The technology will serve as the foundation for the future Arc.

The deal includes technology, intellectual property, and the transfer of nine employees from Informal Systems to Circle. The financial terms have not been disclosed by the parties.

Malachite is built on the Tendermint consensus algorithm. It was created as a flexible and secure solution for decentralized systems with a focus on performance.

Malachite will remain an open-source project under the Apache 2.0 license. Developers will be able to freely use and refine the technology. Informal Systems will continue to support other use cases of the engine and develop its projects, including tools for cross-chain infrastructure.

Consequences of GENIUS ACT

Circle launches Arc amid clearer stablecoin regulations in the US following the passage of the GENIUS Act. The document establishes federal rules for "stablecoins". It requires issuers to fully back their reserves with US dollars or similar liquid assets. For companies with a market capitalization above $50 billion, annual audits are mandatory.

In accordance with the requirements of the GENIUS Act, the U.S. Treasury is looking for new ways for financial institutions to combat illegal activities in the industry.

Today, Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in President Trump’s Executive Order on “Strengthening American Leadership in Digital…

— Treasury Department (@USTreasury) August 18, 2025

The regulator has begun collecting proposals from the public.

The agency is interested in APIs, artificial intelligence, digital identity verification, and the application of blockchain for detecting suspicious activity.

Finance Minister Scott Bessent stated that stablecoins will expand access to the dollar for billions of people and increase demand for U.S. Treasury bonds.

Implementing the GENIUS Act is essential to securing American leadership in digital assets.

Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for U.S. Treasuries, which back stablecoins.

It's a win-win-win for everyone involved:…

— Treasury Secretary Scott Bessent (@SecScottBessent) August 18, 2025

After gathering opinions, the agency will analyze the information and provide the results to the Senate and House committees. This may lead to the development of new regulations. Proposals are accepted until October 17.

Some banking associations are concerned about the law. They believe that the ban on interest payments to stablecoin holders is too weak. In their opinion, exchanges and brokers can easily circumvent this restriction by turning assets from a means of payment into a savings and lending instrument.

TD Cowen analyst Jared Zeiberg believes that banks are justified in their concerns. He compared the situation to the financial crisis of 2008, when people were mass transferring funds to money market funds under government guarantees.

"We believe that the outflow of capital into stablecoins will pose a greater threat, because for consumers it will be a fast and easy way to convert deposits," said Zayberg.

Recall that the company Ripple has agreed to purchase the Rail platform, which specializes in operations with "stablecoins".