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PROJECTS 01.10.2026

Arc Mainnet Launches with 21X Group as Day-1 Partner, Targets Sub-Second Tokenized Settlement

In a significant leap for institutional digital finance, tokenized securities now settle in under one second on the newly launched Arc public mainnet, a pivotal development for capital markets infrastructure. This speed was demonstrated through successful testing conducted by 21X Group, which today announced its status as a Day-1 launch partner for Arc. The collaboration with Circle, the stablecoin issuer, aims to build extensive use cases for tokenized securities across both European and U.S. markets.

Arc positions itself as an open, EVM-compatible Layer-1 blockchain specifically engineered for global financial markets, facilitating real-time money movement and agentic economic activity. Its design uniquely integrates stablecoins as its native gas currency, beginning with Circle’s widely utilized USDC. This approach bypasses the volatility typically associated with gas fees denominated in fluctuating cryptocurrencies, offering a more predictable cost structure for financial institutions engaging with on-chain assets.

21X Group, through its subsidiary 21X AG, already operates a fully regulated trading and settlement system for tokenized securities within the European Union. This established infrastructure currently supports USDC as a settlement currency, demonstrating a prior commitment to stablecoin-based transactions. The firm's expansion plans include an anticipated entry into the U.S. market, with 21X LLC seeking regulatory approvals to form a U.S. broker-dealer. This U.S. entity would operate an alternative trading system designed for tokenized securities.

The successful test of tokenized securities trading on Arc via 21X AG's EU capital market infrastructure, achieving atomic settlement against USDC in less than a second, underscores the network's capabilities. Atomic settlement is a critical feature for institutional finance, ensuring that the transfer of an asset and its payment occur simultaneously, thereby eliminating principal risk. This technological benchmark represents a significant step towards bridging traditional finance with decentralized ledger technology.

Circle, a prominent internet financial platform company, frames Arc as an enterprise-grade blockchain designed to function as the “Economic OS for the internet.” The company’s long-standing focus on programmable blockchain infrastructure, digital assets, and payment applications aligns directly with Arc’s mission. This strategic integration reinforces the trend of major financial technology firms investing in the underlying layers of decentralized finance to cater to institutional demands.

The launch of Arc’s mainnet and the immediate onboarding of a regulated entity like 21X Group signal a maturing landscape for tokenized real-world assets (RWAs). As traditional financial instruments, from equities to debt, are increasingly represented on blockchains, the demand for robust, compliant, and efficient infrastructure grows exponentially. Arc's focus on regulatory clarity and institutional-grade performance aims to capture a significant portion of this burgeoning market.

The shift to stablecoins as gas on Arc also alleviates a major friction point for institutional users accustomed to predictable transaction costs. Unlike fluctuating native tokens, USDC provides a stable pricing mechanism for network operations, enhancing the reliability and cost-effectiveness of on-chain financial activities. This design choice could accelerate adoption among entities prioritizing operational stability over speculative asset exposure.

The partnership between 21X Group and Circle extends beyond mere technical integration; it represents a coordinated effort to define the operational standards for tokenized securities globally. By exploring use cases for issuers and brokers across both EU and US markets, the collaboration is setting precedents for regulatory compliance, interoperability, and market practices in a rapidly evolving sector.

Regulatory bodies in various jurisdictions continue to grapple with appropriate frameworks for digital assets. The involvement of a regulated entity like 21X AG from day one, coupled with 21X LLC's pursuit of U.S. regulatory approvals, demonstrates a proactive approach to compliance. This could serve as a blueprint for other financial institutions looking to leverage blockchain technology while navigating complex legal landscapes.

The implications for market efficiency and global capital flow are substantial. Reducing settlement times from days to seconds, along with mitigating counterparty risk through atomic swaps, has the potential to unlock trillions in currently constrained capital. The traditional financial system, burdened by legacy infrastructure and intermediaries, could see significant transformation as such blockchain networks gain traction.

Looking ahead, the success of Arc will likely hinge on its ability to attract a broad ecosystem of financial participants and maintain robust regulatory adherence across multiple jurisdictions. The initial focus on tokenized securities provides a strong foundation, but the network’s future expansion into other forms of digital assets and financial services will be closely watched by an industry eager for scalable, compliant Web3 solutions to redefine global finance.

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