Tuesday, October 27, 2026

Scorechain now supports the Arc blockchain

Products
By Scorechain Team

Quick overview

Scorechain now supports the Arc blockchain by Circle, a Layer 1 network built for stablecoin finance. Arc is live across every Scorechain product and becomes the 26th blockchain on the platform.

Compliance teams can now screen Arc addresses, monitor Arc transactions, and investigate Arc fund flows with the same risk scoring, entity attribution, and audit trail they use on every other supported network. Coverage is available today to all Scorechain clients.

"Arc is built for regulated finance, with stablecoins, tokenized funds, and institutional counterparties on one network. That is exactly where compliance teams need full visibility from the first transaction. With Arc now live across Scorechain, our clients can screen, monitor, and investigate activity on Arc with the same rigour they apply everywhere else, and adopt the network with confidence."
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- Pierre Gérard, CEO and co-founder, Scorechain

What is the Arc blockchain?

Arc is an open, EVM-compatible Layer 1 blockchain developed by Circle, the issuer of USDC. Its public mainnet launched on September 16, 2026. Arc is designed for stablecoin payments, tokenized assets, lending, and capital markets activity.

Four design choices set Arc apart from most public blockchains:

  • USDC as gas. Transaction fees are paid in USDC rather than a volatile native token.
  • Sub-second finality. Transactions settle and become final in under a second.
  • Permissioned validators. Anyone can use the network, but block production sits with a permissioned validator set. Its 11 founding validators include BlackRock, DTCC, Mastercard, and Visa. Circle plans to explore a move from proof of authority to proof of stake in 2027.
  • Institutional assets on day one. Tokenized funds such as BlackRock's BUIDL and Circle's USYC are available for trading, lending, and collateral. Circle and DTCC plan to tokenize DTC-custodied assets on Arc from the second half of 2027.

Circle is also developing opt-in confidential transactions with view keys for authorized parties, and tooling for AI agents that hold wallets and make payments. Neither changes what compliance teams can see on Arc today, but both shape what they will need tomorrow.

How Arc changes the compliance workload

Arc concentrates stablecoin payments, tokenized funds, and institutional counterparties on one network. For stablecoin compliance, that combination raises the bar for screening speed, counterparty assurance, and source-of-funds evidence.

Screening has to happen before settlement. With sub-second finality, there is no window to intervene once a payment is sent. Crypto wallet screening and risk checks need to run before funds move, not after.

Stablecoin flows dominate. USDC is both the gas token and the main asset on Arc, and it also circulates as a standard token. Crypto transaction monitoring has to follow every USDC movement, whatever form it takes, to keep balances and exposure accurate.

Institutional counterparties expect institutional due diligence. Arc hosts tokenized funds, lending markets, and FX activity. Banks, asset managers, and custodians transacting there need documented counterparty risk assessments and a clear audit trail.

Cross-chain exposure is the norm. USDC and EURC move between Arc and other networks. A risk assessment that stops at the Arc boundary misses where funds came from and where they go next.

New actors are coming. AI agents executing payments, and confidential balances visible only to authorized parties, will add new questions about who the counterparty is and what evidence a compliance team can rely on.

How compliance teams can use Scorechain on Arc

Arc coverage runs through the full Scorechain platform, so teams can apply their existing risk settings and workflows to Arc from day one.

Workflow Scorechain product What it does on Arc
Onboard a counterparty Wallet Screening Scores an Arc address before you transact, against more than one million labelled entities
Watch live activity Transaction Monitoring Applies your alert rules to Arc deposits and withdrawals as they happen
Track stablecoins and tokenized assets Digital Asset Intelligence Follows USDC and other assets on Arc alongside their deployments on other chains
Trace funds Exploration Tool and Flux Analysis Maps where Arc funds came from and where they went, across chains
Automate checks Blockchain Analytics API Embeds Arc screening and monitoring in your own onboarding and payment flows
Ask in plain language Scorechain MCP and Scorechain AI Runs Arc risk assessments from ChatGPT, Claude, or the self-serve app

Scorechain's risk score runs from 0 to 100, where a lower score means higher risk. Every score on Arc links back to the entities and exposures behind it, so analysts can justify each decision to auditors and regulators.

The regulatory context

Arc's design does not change a firm's obligations. Activity on Arc falls under the same AML and counter-terrorist financing rules as any other blockchain.

  • MiCA sets the authorisation and conduct regime for crypto-asset service providers in the EU, including those handling e-money tokens such as USDC and EURC.
  • The EU Transfer of Funds Regulation requires CASPs to collect and share originator and beneficiary information on crypto transfers, the EU's implementation of the Travel Rule.
  • The EU AML Regulation (AMLR) brings CASPs into a single, directly applicable AML rulebook across member states.
  • FATF Recommendations 15 and 16 set the global baseline for virtual asset service providers and the Travel Rule.

Scorechain's Travel Rule integrations with Notabene and CryptoSwift apply to Arc transfers in the same way as other supported networks.

Frequently asked questions

Is Arc a Layer 1 or a Layer 2?

Arc is a Layer 1 blockchain. It runs its own consensus with a permissioned validator set and is compatible with the Ethereum Virtual Machine.

Do existing Scorechain clients need to do anything to use Arc coverage?

No. Arc is available across the Scorechain platform and API to all clients, using their existing risk settings.

Which assets on Arc does Scorechain monitor?

Scorechain monitors USDC, which is Arc's gas token and main asset, along with other tokens transacted on the network.

Can Scorechain trace funds that move between Arc and other blockchains?

Yes. The Exploration Tool and Flux Analysis follow funds across Scorechain's 26 supported blockchains, so an investigation does not stop when funds leave Arc.

How does Scorechain score risk on Arc?

Each Arc address and transaction receives a score from 0 to 100, where a lower score means higher risk, based on its exposure to labelled entities.

Start monitoring Arc with Scorechain

Arc brings stablecoin payments and tokenized assets onto a single, fast-settling network. Scorechain gives compliance teams the screening, monitoring, and investigation coverage to work there with confidence.

Book a demo to see Arc coverage in the Scorechain platform.

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