According to Jeremy Allaire on June 10, Circle unveiled Arc Privacy, a selective disclosure privacy engine built on its Arc Layer 1 blockchain. The solution enables enterprises to conceal sensitive transaction data—including payroll, treasury operations, and lending activities—while allowing authorized parties access for compliance and auditing purposes. Unlike fully anonymous systems, Arc Privacy gives organizations granular control over which information remains private and which data is visible on-chain.
Arc Privacy is compatible with the Ethereum Virtual Machine, allowing developers to integrate privacy features into existing smart contract environments without infrastructure replacement. This compatibility is designed to reduce implementation complexity and accelerate adoption among financial institutions managing tokenized assets and regulated operations. The platform supports Circle's stablecoins, USDC and EURC, and aims to address a critical barrier to institutional blockchain adoption by combining privacy with regulatory transparency.