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Key Takeaways
- Circle plans to launch an on-chain refund protocol for its Arc blockchain to address fraud and compliance issues in stablecoin transactions.
- The Refund Protocol will use escrow and arbiter-resolved refunds to let treasury teams and banks manage disputes fully on-chain.
Circle plans to introduce an on-chain refund protocol for its Arc blockchain to address fraud and compliance issues in stablecoin transactions.
The Refund Protocol will hold disputed payments in escrow and enable arbiter-resolved refunds, providing a mechanism for treasury teams and banks to manage transaction disputes directly on-chain.
Arc was introduced in August 2025 as an enterprise-grade Layer-1 blockchain designed for stablecoin-powered payments, foreign exchange, and capital markets. The network emphasizes regulatory compliance while enabling instant $USDC settlements for financial institutions.
In early September 2025, Circle partnered with Fireblocks to integrate Arc with the Fireblocks Network and Circle Payments Network. The collaboration aims to accelerate $USDC adoption among banks through compliance-first dispute resolution tools.
The refund mechanism addresses growing institutional demand for on-chain payment infrastructure that matches traditional banking fraud protections. Treasury teams have increasingly adopted stablecoin infrastructure for payroll and settlement operations, creating a need for dispute resolution capabilities.