- StableFX gives institutions on-chain FX trading with real-time pricing and faster settlement.
- Arc enables atomic settlement, reducing FX counterparty exposure across currencies.
- Circle adds regional stablecoins to widen currency access and deepen global liquidity.
Circle has introduced StableFX, a new on-chain foreign exchange engine designed to modernize how institutions trade global currencies using stablecoins. The launch, now live on the Arc blockchain testnet, adds real-time settlement, deeper liquidity access, and enhanced compliance features to a foreign exchange market still reliant on aging infrastructure. The rollout is backed by a companion initiative, Circle Partner Stablecoins, which expands the range of supported currencies by onboarding regulated regional stablecoins.
Aiming to Upgrade a $9.6 Trillion Market
The global FX market processes an estimated $9.6 trillion in trades per day, according to data from the Bank of International Settlements, more than double the combined daily volume of all global stock markets. Yet despite its scale, much of FX relies on delayed settlement cycles, prefunded accounts, and fragmented trading venues.
Circle aims to inject speed and transparency into this ecosystem through StableFX, an engine that facilitates stablecoin-denominated FX trades with 24/7 on-chain settlement. StableFX operates on Arc, Circle’s new Layer-1 blockchain launched on testnet in late October with backing from more than 100 financial and crypto institutions, including Goldman Sachs, BlackRock, and Visa.
Circle Launches StableFX on Arc Blockchain (Source: X)
However, StableFX is available only to institutions that complete full Know-Your-Business (KYB) and Anti-Money Laundering (AML) compliance, creating what Circle calls a “compliance-centric” trading environment.
How StableFX Works: RFQ Pricing Meets Atomic Settlement
At the core of StableFX is an institutional-grade trading model built around request-for-quote (RFQ) execution. Institutions can quote and execute trades across multiple liquidity providers, securing competitive pricing with low slippage. Every completed trade settles on-chain through atomic settlement, ensuring that payment and delivery occur simultaneously or not at all, resulting in a major reduction in settlement risk.
Additional features include:
- All-to-all trading, removing the need for bilateral agreements
- Capital-efficient 24/7 settlement windows
- Programmable netting models for improved liquidity management
By removing intermediaries and clearing delays, Circle says StableFX opens the door to continuous FX settlement, a major departure from traditional T+1 cycles that dominate today’s market.
The service is currently in active testing on the Arc testnet ahead of the blockchain’s planned 2026 mainnet launch, with Circle inviting developers and institutional partners to begin experimenting.
Circle Partner Stablecoins Expands Currency Options
Alongside StableFX, Circle unveiled Circle Partner Stablecoins, a program that integrates regulated non-USD stablecoins into the Arc ecosystem. These partners must meet strict requirements on risk management, reserves, technical reliability, and operational governance.
Initial participants include:
- AUDF (Forte, Australia)
- BRLA (Avenia, Brazil)
- JYPC (Japan)
- KRW1 (Busan Digital Asset Custody Services, Korea)
- MXNB (Juno/Bitso, Mexico)
- PHPC (Coins.ph, Philippines)
- QCAD (Stablecorp, Canada)
- ZARU (ZAR Universal Network, South Africa)
These integrations allow institutions to trade local currency pairs directly on StableFX while gaining interoperability with USDC. Circle says the program also connects regional issuers to its global network of payment partners and liquidity providers.
“We’re connecting the world’s currencies on Arc,” said Nikhil Chandhok, Circle’s Chief Product and Technology Officer, highlighting the combined power of StableFX, Arc, and the partner stablecoin network.
A Push Into TradFi Revenue Streams
Circle’s expansion into FX underscores a broader trend among leading crypto firms targeting traditional financial markets. Analysts at Bernstein recently noted that Circle is “fighting a narrative battle against the bears,” even as fundamentals remain strong, citing over $740 million in Q3 revenue, a 66% increase year-over-year.
By tapping into FX, a market several orders of magnitude larger than crypto, Circle is positioning stablecoins as programmable infrastructure for global liquidity, settlement, and cross-border payments.
With StableFX now active on testnet and Arc’s mainnet launch targeted for 2026, institutions seeking faster, compliant FX execution may soon have access to a continuously running, blockchain-powered settlement network.
