Circle is expanding into the global foreign-exchange (FX) market, aiming to streamline one of traditional finance’s most established systems using stablecoins. The issuer of USDC introduced Circle StableFX, an institutional-grade onchain FX platform built on its upcoming Arc1 layer-1 blockchain, alongside the Circle Partner Stablecoins program to support compliant regional tokens.
According to the Bank of International Settlements (BIS), daily global FX trading hit $9.6 trillion in April, surpassing all global stock markets combined and more than five times the average daily trading in US equities. Circle seeks to tap into this vast market by enabling institutions to trade stablecoin currency pairs with faster settlement, fewer intermediaries, and reduced counterparty risk.
With StableFX and Circle Partner Stablecoins, we’re connecting the world’s currencies on Arc, Circle’s chief product and technology officer.
Compliance and accessibility at the core
Institutions using Circle StableFX must undergo full Know-Your-Business (KYB) and Anti-Money Laundering (AML) verification to access the platform’s compliance-focused trading environment. The solution launched on the Arc Testnet, allowing developers and institutions to explore the system, with the alpha version expected to roll out alongside the Arc mainnet in 2026.
Crypto firms seek new TradFi revenue streams
Circle’s push into FX reflects a broader trend of crypto companies aiming to capture traditional financial market revenue. With the stablecoin issuer reporting $740 million in Q3 revenue, up 66% year-over-year, expanding into FX markets represents a potential new growth channel.
The Arc testnet has already drawn participation from major players including Goldman Sachs, BlackRock, Visa, and more than 100 additional companies. Meanwhile, Coinbase is also exploring traditional finance opportunities through tokenized stocks, prediction markets, and stablecoin adoption under its Everything Exchange strategy.
Everything Exchange last quarter, and made progress in Q3 by increasing the number of tradable spot assets, expanding our derivatives offerings, and continuing to lay the groundwork for additional pillars, Coinbase said in its Q3 earnings report.