Circle plans on-chain refund protocol for Arc blockchain

Key Takeaways

Circle plans to launch an on-chain refund protocol for its Arc blockchain to handle fraud and compliance points in stablecoin transactions.
The Refund Protocol will use escrow and arbiter-resolved refunds to let treasury groups and banks handle disputes totally on-chain.

Circle plans to introduce an on-chain refund protocol for its Arc blockchain to handle fraud and compliance points in stablecoin transactions.

The Refund Protocol will maintain disputed funds in escrow and allow arbiter-resolved refunds, offering a mechanism for treasury groups and banks to handle transaction disputes instantly on-chain.

Arc was launched in August 2025 as an enterprise-grade Layer-1 blockchain designed for stablecoin-powered funds, overseas trade, and capital markets. The community emphasizes regulatory compliance whereas enabling instantaneous USDC settlements for monetary establishments.

In early September 2025, Circle partnered with Fireblocks to combine Arc with the Fireblocks Community and Circle Funds Community. The collaboration goals to speed up USDC adoption amongst banks by way of compliance-first dispute decision instruments.

The refund mechanism addresses rising institutional demand for on-chain fee infrastructure that matches conventional banking fraud protections. Treasury groups have more and more adopted stablecoin infrastructure for payroll and settlement operations, creating a necessity for dispute decision capabilities.