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Extended Arc Migration: Settlement Moves From Starknet to Circle’s Arc

Extended Arc Migration: Settlement Moves From Starknet to Circle’s Arc

by | Oct 22, 2026 | Innovation Circle

Extended, a decentralized perpetuals exchange, began moving its settlement layer from Starknet to Arc, the Layer 1 blockchain developed by Circle, on October 22, 2026. The Extended Arc migration started at 13:00 UTC, according to Crypto Briefing.

The shift matters because the platform carries roughly $117.7 million in total value locked, the bulk of it sitting on Starknet, and the exchange says trading will run without interruption throughout the move. For Arc, whose mainnet went live only weeks earlier, landing an established derivatives venue is an early test of its capacity to host high-throughput financial applications.

The migration relocates the infrastructure that settles trades on the exchange while leaving the trading experience itself intact, according to the report. That combination of a live order book and a changing settlement layer is what makes the October 22 switch notable for both the platform's users and its new host chain.

How the Extended Arc migration works

Extended says trading will keep running through the switch, with no interruption to the order book. Deposits and withdrawals, however, will pause for up to two hours while the Extended Arc migration takes place, Crypto Briefing reported.

The exchange expects the majority of participants to come through the migration with balances intact and positions untouched. For most users, no action is required: balances unaffected by the asset changes are set to be shifted into wETH on a one-for-one basis automatically, and holders do not need to complete any paperwork for that to happen.

The near-term to-do list for users is short but non-negotiable, according to the report. Anyone planning to move funds on or off the platform should plan around the two-hour deposit and withdrawal pause that began at 13:00 UTC on October 22, since transfers in either direction will not be processed during that window.

Once the pause lifts, the migration is designed to leave the typical trader in the same position as before, with the settlement layer underneath changed. The exchange's expectation is that most accounts will carry their balances and open positions across the transition without disruption, according to Crypto Briefing.

Deadline for USDT and wBTC holders

USDT and wBTC will not be supported on Arc, which creates a hard deadline for holders of either asset. Users holding USDT or wBTC had until October 21, 2026, the day before the migration, to act.

Those users were given two paths. They could swap their USDT for USDC and their wBTC for cirBTC on a one-for-one basis, or they could pull the assets off the platform entirely. The conversion terms also include a 0.50% premium.

Traders holding meaningful USDT or wBTC balances were advised to check exactly how that premium applies to their holdings before the cutoff, according to Crypto Briefing. The cost of converting could vary depending on the size of the balance, making the calculation worth doing ahead of the deadline rather than after.

The cutoff date of October 21 was set one day ahead of the migration itself, giving the exchange a clean break between the asset transition and the settlement switch. Users who missed that window faced the consequences of holding assets that the new chain does not recognize.

Why Extended chose Circle's Arc

According to the exchange, the goals behind the move center on quicker performance, delivered through finality of less than a second, and on transaction fees denominated in stablecoins. Extended has also presented the migration as a route to deeper ties with institutional investors, and the predictability of those fees is part of what it believes will appeal to that audience.

Arc is Circle's own blockchain. The network's mainnet went live on September 16, 2026, and the group of founding validators named at launch includes BlackRock and Visa, according to Crypto Briefing.

The asset changes align the exchange with its new host chain. Because USDC is the flagship stablecoin issued by Circle, moving stablecoin balances out of USDT and into USDC fits Arc's native ecosystem. By settling on a network operated by one stablecoin issuer, where USDC serves as the standard dollar asset, Extended ends up more tightly bound to Circle's ecosystem than it was on Starknet.

That closer relationship cuts both ways. The exchange gains the performance and fee structure it says it wants, but it also places its settlement infrastructure within an ecosystem defined by a single issuer's product, a degree of alignment it did not have before the move.

What the move means for Arc

For Arc, securing an established perpetuals exchange only weeks after its mainnet debut amounts to a helpful early indicator of traction. A derivatives platform arriving with roughly $117.7 million in total value locked hands the young network a functioning, high-throughput use case it can point to as evidence of demand.

For Extended, the operational challenge is substantial. Relocating a nine-figure pool between settlement layers while the order book stays live amounts to a meaningful test of the exchange's infrastructure and of Arc's readiness to support it.

The outcome will be watched as a measure of whether a chain backed by a major stablecoin issuer, and validated at launch by firms such as BlackRock and Visa, can absorb real derivatives flow without incident. A smooth transition would give Arc a working reference case; any disruption would fall on an exchange whose users were told their positions would be untouched.

Conclusion

The Extended Arc migration began on October 22, 2026, at 13:00 UTC, moving settlement off Starknet while keeping trading live and pausing deposits and withdrawals for up to two hours. The exchange brings roughly $117.7 million in total value locked to a chain whose mainnet launched on September 16 with BlackRock and Visa among its founding validators. The immediate next step for users holding USDT or wBTC was to convert or withdraw by the October 21 deadline, since neither asset is supported on Arc.

Frequently Asked Questions

When did Extended migrate from Starknet to Arc?

The migration began on October 22, 2026, at 13:00 UTC. Extended said trading would run without interruption, though deposits and withdrawals paused for up to two hours during the move.

What happens to USDT and wBTC on Extended after the Arc migration?

USDT and wBTC are not supported on Arc. Holders had until October 21, 2026, to swap USDT for USDC and wBTC for cirBTC on a one-for-one basis, with a 0.50% premium, or to withdraw the assets from the platform.

How much total value locked does Extended bring to Arc?

Extended carries roughly $117.7 million in total value locked, with the bulk of it previously sitting on Starknet. The migration gives Arc a working, high-throughput derivatives use case within weeks of its mainnet debut.

What is Circle's Arc blockchain?

Arc is a Layer 1 blockchain developed by Circle, the issuer of the USDC stablecoin. The network's mainnet went live on September 16, 2026, and BlackRock and Visa were named among its founding validators.

Why is Extended moving its settlement layer to Arc?

Extended cites faster performance through sub-second finality and stablecoin-denominated transaction fees. It has also framed the move as a way to build deeper connections with institutional investors, drawn in part by predictable fees.

Sources

Circle CEO Digital Dollars Pitch Shrugs Off Bitcoin Slump for AI Era

Circle CEO Digital Dollars Pitch Shrugs Off Bitcoin Slump for AI Era

by | Oct 22, 2026 | Innovation Circle

Circle CEO digital dollars are the focus for Jeremy Allaire, who brushed aside questions about Bitcoin's underperformance this year, telling CNBC his attention is on dollar-pegged tokens designed for an economy where autonomous software handles transactions. In an interview reported by Yahoo Finance, Allaire framed his company's mission around financial plumbing rather than the trading swings of digital commodities.

The comments arrive as the Office of the Comptroller of the Currency puts finishing touches on regulations tied to the GENIUS Act, legislation passed in 2025 that governs tokens pegged to the dollar. Allaire said the regulatory work validates his sector's place in the financial system, even as other corners of crypto continue to face questions.

Allaire Dismisses Bitcoin Price Focus

CNBC's Seema Mody pressed Allaire on why Bitcoin has lagged this year if crypto represents the future of finance. Allaire rejected the premise that price action should drive the conversation about the technology's utility, making clear he views speculative trading as separate from the infrastructure Circle is building.

"I don't pay much attention specifically to like these sort of specific digital commodities, how they're trading, etc.," Allaire said, according to the interview. He positioned dollar-pegged tokens as instruments for moving money, extending credit and allocating capital, not as assets for betting on price appreciation.

Because these tokens are engineered to maintain a one-to-one peg with the dollar, their value does not rise and fall with Bitcoin's volatility. Allaire highlighted increasing usage of networks like Arc, a blockchain Circle debuted in September, as evidence of momentum behind his vision for programmable money that operates independently of crypto market cycles.

AI Agents and Machine-Built Blockchains

Allaire's broader argument rests on the rise of AI agents, software capable of completing tasks without human direction that he expects will handle a growing share of economic transactions. He contends this transition will generate need for dollar-denominated tokens and blockchains designed for machine use, the systems Circle develops.

He provided no data to quantify that anticipated demand during the interview. The pitch positions Circle's products as the underlying rails for an automated economy rather than instruments for traders chasing returns in volatile markets.

The distinction matters for Circle's business model. While Bitcoin's price swings dominate headlines and drive trading volume on exchanges, Allaire is betting that the real growth lies in software programs that need to settle payments, move funds between accounts and execute financial contracts without human intervention.

GENIUS Act Rules Take Shape

Allaire said the OCC's proposed regulations have direct implications for Circle, which issues USD Coin (USDC). According to Orrick, the draft rules would mandate that issuers hold reserves matching or exceeding the value of tokens in circulation and honor redemptions at face value within two business days.

The proposal would also prohibit issuers from offering interest to token holders. Allaire said the legislation is insulated from midterm political shifts because it attracted support from both parties, though the vote counts reveal a more divided picture than his characterization suggests.

Eighteen Senate Democrats voted for the GENIUS Act in 2025. In the House, Democrats were divided 102 to 110 when the bill came up for final passage, a narrow margin that underscores the fragility of the coalition Allaire described as bipartisan protection against future political headwinds.

Congress's broader effort to establish market structure rules for crypto, known as the CLARITY Act, stalled in the Senate and never became law. The contrast between the two bills highlights how stablecoins have achieved regulatory clarity while the wider crypto industry continues to operate without a comprehensive federal framework.

Banks Enter the Stablecoin Race

Competition is intensifying just as the regulatory picture comes into focus. Traditional banks have moved quickly to enter the stablecoin market, and 21 institutions have committed to launching a joint issuer, according to the report.

The sector now faces a dual reality: federal oversight is arriving at the same moment as a wave of new rivals from mainstream finance. Allaire's wager is that dollar tokens built for AI-powered transactions will prove more durable than the speculative cycles that drive coverage of Bitcoin and other digital assets.

The entry of established banks into the market could test Circle's first-mover advantage. While the company has operated USDC for years and built relationships across crypto and fintech, the joint issuer backed by 21 institutions represents a coordinated challenge from the traditional financial sector that Allaire has argued will eventually adopt blockchain-based money.

Conclusion

Allaire's message to CNBC was consistent: Circle is not in the business of tracking Bitcoin's price. The company is building dollar-pegged tokens for payments, lending and a future where AI agents execute transactions on blockchains designed for machines. The OCC's final rules for the GENIUS Act will shape how that business operates, setting reserve and redemption standards while barring interest payments to holders. Whether the bipartisan coalition that passed the law holds through the midterms, and whether banks launching rival tokens erode Circle's position, are the next concrete tests for Allaire's vision.

Frequently Asked Questions

What did Circle CEO Jeremy Allaire say about Bitcoin's slump?

Allaire told CNBC he does not pay much attention to how specific digital commodities trade. He said his focus is on dollar-pegged tokens for payments, lending and a future where AI software moves money, according to Yahoo Finance.

What are the OCC's proposed rules for the GENIUS Act?

The OCC proposal would require stablecoin issuers to hold reserves at least equal to outstanding tokens and to redeem them at par within two business days, according to Orrick. The rules would also bar issuers from paying holders interest.

How did Democrats vote on the GENIUS Act in 2025?

Eighteen Senate Democrats backed the GENIUS Act in 2025. House Democrats split 102 to 110 on final passage, according to Yahoo Finance.

What is Circle's Arc blockchain?

Arc is a blockchain Circle launched in September. Allaire pointed to growing activity on Arc and similar networks as part of his pitch for dollar tokens and machine-built infrastructure designed for AI-driven economic activity.

Are banks competing with Circle in stablecoins?

Yes. Banks have moved into stablecoins, and 21 institutions have committed to a joint issuer, according to Yahoo Finance. The competition arrives as federal rules for the sector take shape under the GENIUS Act.

Sources

Circle Expands Into 40 Emerging Markets as Stablecoin Demand Grows

Circle Expands Into 40 Emerging Markets as Stablecoin Demand Grows

by | Oct 19, 2026 | Adoption

Circle is preparing to expand into about 40 emerging and developing countries, chief executive Jeremy Allaire told Reuters, as the company positions itself for a broader phase of stablecoin adoption.

The move matters because Circle ranks as the largest regulated stablecoin issuer globally, with roughly a quarter of the market, giving its international push direct implications for the reach of USDC and for Circle's stock story.

Allaire made the comments during the IMF and World Bank meetings in Bangkok, where he described blockchain as moving out of the early adopter phase and into mainstream scaling.

Why Circle Is Targeting Emerging Markets

Allaire linked the expansion to rising demand across Southeast Asia, Latin America, Africa and the Middle East, where businesses and individuals are seeking ways to take part in an internet-based economy.

He also said stablecoin adoption is happening mostly outside the United States, underscoring why the company is looking abroad for its next stage of growth.

The company's strategy reflects a wider pattern in stablecoin use, with demand increasingly coming from payments and financial infrastructure needs rather than only from crypto-native users.

In that context, Circle appears to be treating stablecoins less as a niche settlement tool and more as an entry point into mainstream transactions, particularly in places where local banking and payment systems may be less flexible.

A broader presence across multiple markets could make it easier for regional partners to build compliant stablecoin services, though it depends on regulatory and banking integration remaining workable in each jurisdiction.

Payments Push and the Tazapay Deal

Circle's geographic ambition is being paired with a targeted expansion in payments infrastructure.

As part of that effort, Circle struck a deal to buy Tazapay, a Singapore-based cross-border payments platform, in an all-stock transaction valued at $400 million that is expected to close in 2027, Cointelegraph reported.

If completed, the acquisition would fit Circle's effort to scale beyond early adopters and deepen its presence in cross-border payments.

Cross-border payments are a natural proving ground for stablecoins because they demand speed, transparency and predictable settlement, characteristics dollar stablecoins are designed to provide.

Still, integration and regulatory alignment are likely to determine whether the acquisition accelerates usage in the targeted regions, and a deal's headline value does not automatically translate into faster adoption unless the acquired platform can expand its partner base, satisfy compliance requirements and cut costs enough to make customers choose stablecoin settlement over traditional alternatives.

The practical question for investors and operators is whether this broader footprint will produce sustained usage rather than one-off pilots.

USDC Usage and Market Position

Circle earns income from the reserves behind USDC, so growth in circulation and usage remains central to the business.

USDC circulation reached $73.3 billion in the second quarter, up 19% from a year earlier.

By market capitalization, USDC still trails Tether's USDt as the second-biggest dollar-backed stablecoin, but Bernstein said it has made substantial gains in transaction activity.

Bernstein's analysis, cited by Cointelegraph, found that USDC's share of adjusted stablecoin transaction volume climbed from roughly 40% in 2025 to above 60% so far in 2026, moving ahead of USDt on that measure.

That matters because transaction volume is often used as a proxy for how actively stablecoins are moving across exchanges, payment rails and settlement flows, while market capitalization can reflect price and liquidity.

Sustained gains in transaction share can indicate real adoption by payment service providers and market participants, though readers should watch how adjusted volume is defined and whether the shift reflects broader usage or a change in where activity is routed.

Arc, AI Payments and Revenue Beyond Reserves

Circle's Arc system has been adopted by firms including BlackRock, Visa and Standard Chartered.

On an earnings AMA, Allaire said Arc's public Mainnet launches on September 16 and said AI agents are driving use.

Those AI agents are being used to carry out very small payments, frequently amounting to fractions of a cent, in exchange for web research and data.

Bernstein analysts also highlighted early signs of stablecoin usage tied to payments executed by AI agents, and if automated systems increasingly need programmable, low-volatility settlement assets, dollar stablecoins like USDC could become a default bridge currency for certain workflows, though the durability and scale of that activity beyond early experiments remains uncertain.

Allaire has also said Circle is building other revenue lines beyond reserve income, including its payments network and Arc.

Regulation, Competition and What Comes Next

In July, Circle secured a federal bank charter, placing it among the first stablecoin issuers to do so.

The U.S. Genius Act is set to take effect in January, and Allaire described it as a watershed moment on the grounds that the world will have legal digital dollars.

At the same time, banks in the United States and Europe are developing their own stablecoins, adding competitive pressure as Circle expands abroad.

Allaire said he views that trend as a sign of a healthy market, even as Tether continues to hold a much larger share of the market.

That gap matters for Circle stock as it expands, especially with the shares down 23% over the last six months.

Bernstein analysts have turned bullish on Circle and anticipate a new growth cycle for USDC over the next 12 months, pointing to renewed momentum in broader crypto markets, improving U.S. regulatory clarity, the growth of tokenized capital markets and a wider role for stablecoins in payments.

Circle's next steps will likely depend on whether its market expansion and payments strategy translate into sustained USDC usage, and for the rest of 2026 and into 2027 investors should monitor regulatory developments affecting stablecoins alongside concrete evidence that transaction share growth holds up across regions and partners.

Conclusion

Circle is set on a much wider international buildout, with roughly 40 developing markets in its sights and a payments acquisition that could support that push. The company enters that next phase with a large regulated position in stablecoins, rising USDC circulation and new infrastructure such as Arc, but it still trails Tether in overall market share. The next concrete milestones are the Genius Act taking effect in January and the expected closing of the Tazapay deal in 2027.

Frequently Asked Questions

How many emerging markets is Circle planning to enter?

Circle is preparing to expand into about 40 emerging and developing countries, according to CEO Jeremy Allaire. He told Reuters the company is positioning for broader stablecoin adoption as demand grows outside the United States.

Why is Circle expanding into Southeast Asia, Latin America, Africa and the Middle East?

Allaire said demand is rising in those regions as individuals and businesses look for ways to participate in an internet-based economy. The expansion also reflects growing stablecoin use in payments and financial infrastructure, not just among crypto-native users.

What is Circle's Tazapay acquisition and when will it close?

Circle agreed to buy Singapore-based cross-border payments platform Tazapay in a $400 million all-stock deal, Cointelegraph reported. The transaction is expected to close in 2027 and would support Circle's broader payments expansion.

How large is USDC circulation now?

USDC circulation reached $73.3 billion in the second quarter, up 19% from a year earlier. Circle earns income from the reserves behind USDC, making circulation growth important to its business.

How does USDC compare with Tether in 2026?

USDC remains behind Tether's USDt in market capitalization, but Bernstein said USDC has gained sharply in transaction activity. Its share of adjusted stablecoin transaction volume rose from about 40% in 2025 to more than 60% so far in 2026.

Sources