Arc Launches Programmable Settlement Layer to Replace Legacy Capital Markets Infrastructure

TLDR:

• Arc’s atomic DvP settles tokenized assets and stablecoin payments simultaneously, eliminating principal risk in one transaction.
• Traditional T+1 and T+2 settlement cycles lock up capital and increase counterparty exposure across fragmented intermediary systems.
• Arc embeds transfer restrictions, jurisdictional controls, and compliance logic directly into onchain assets via smart contracts.
• Onchain collateral management on Arc automates margin calls, liquidations, and top-ups using deterministic, stablecoin-native flows.

Capital markets settlement has long been slowed by outdated post-trade infrastructure and multi-day clearing cycles. Arc, a purpose-built Layer-1 blockchain, is working to change that.

The platform combines atomic delivery-versus-payment, stablecoin-native execution, and deterministic sub-second finality.

These tools consolidate fragmented post-trade workflows into one programmable layer. Institutions can now achieve real-time settlement while maintaining compliance-ready controls across all counterparties.

Arc Addresses Deep Structural Gaps in Post-Trade Workflows

Most global capital markets still operate on T+1 or T+2 settlement cycles. These delays lock up capital and increase counterparty exposure considerably.

Risk management teams must bridge the gap between trade execution and final settlement. That process raises capital requirements and slows down institutional modernization efforts.

Post-trade workflows are also spread across multiple disconnected systems and entities. Execution, clearing, netting, custody, and settlement each run on separate infrastructure.

This fragmentation creates duplicated recordkeeping and reconciliation bottlenecks that are costly to manage. Modernizing these systems is difficult when they are not designed to communicate with each other.

Traditional ledgers add another layer of difficulty through limited real-time traceability. Audit trails are inconsistent across intermediaries, and manual reporting remains common.

Compliance checks rely heavily on human review, which introduces errors and delays. These conditions make it harder for institutions to meet regulatory requirements efficiently.

Arc addresses these gaps through its architecture. The platform offers predictable, stablecoin-denominated fees and opt-in configurable privacy with selective disclosure.

Authorized parties such as regulators or auditors can access specific data through view-key access. This design keeps sensitive information protected while maintaining operational transparency.

Programmable Settlement Enables Atomic DvP and Onchain Collateral Management

Arc’s rails enable true atomic delivery-versus-payment in a single onchain transaction. Tokenized assets and stablecoin payments transfer simultaneously, so neither leg settles without the other.

This structure reduces principal risk across institutional workflows. Settlement finality is cryptographically verifiable and arrives in under a second.

Beyond settlement, Arc supports the full lifecycle of tokenized securities and structured products. Smart contracts automate issuance, redemptions, distributions, and corporate actions directly onchain.

Asset servicing becomes a software function rather than a manual operational task. Transfer restrictions and jurisdictional controls are embedded into the asset itself.

Onchain collateral and margin management also run through Arc’s programmable logic. The system can enforce thresholds, trigger margin calls, and automate liquidations when conditions are met.

Stablecoin-native flows reduce the need for batch reconciliation between parties. Lenders and institutional counterparties gain greater transparency over margin operations as a result.

Prediction markets represent another use case built on this infrastructure. These markets can settle instantly in stablecoins with predictable fees after oracle-verified outcomes.

Economic indicators, event results, and risk signals can all serve as resolution inputs. This creates faster feedback loops for market-based forecasting built on real-time data.

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