Dwelling » Ecosystem » Circle plans on-chain refund protocol for Arc blockchain
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Sep. 27, 2025
The brand new protocol targets to spice up fraud security and regulatory compliance for banks the utilization of on-chain stablecoin transactions on Arc.
Photo: Kevin Rodriguez
Key Takeaways
- Circle plans to launch an on-chain refund protocol for its Arc blockchain to take care of fraud and compliance issues in stablecoin transactions.
- The Refund Protocol will spend escrow and arbiter-resolved refunds to let treasury groups and banks arrange disputes completely on-chain.
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Circle plans to introduce an on-chain refund protocol for its Arc blockchain to take care of fraud and compliance issues in stablecoin transactions.
The Refund Protocol will preserve disputed funds in escrow and enable arbiter-resolved refunds, providing a mechanism for treasury groups and banks to regulate transaction disputes at as soon as on-chain.
Arc was as soon as launched in August 2025 as an endeavor-grade Layer-1 blockchain designed for stablecoin-powered funds, foreign substitute, and capital markets. The network emphasizes regulatory compliance while enabling quick USDC settlements for monetary establishments.
In early September 2025, Circle partnered with Fireblocks to integrate Arc with the Fireblocks Community and Circle Payments Community. The collaboration targets to inch up USDC adoption among banks by compliance-first dispute decision tools.
The refund mechanism addresses rising institutional ask for on-chain cost infrastructure that suits historic banking fraud protections. Treasury groups possess an increasing number of adopted stablecoin infrastructure for payroll and settlement operations, rising a necessity for dispute decision capabilities.
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