Arc House
Partner Spotlights
July 17, 2026

Arc 🤝 Cycles: Multilateral clearing and settlement on Arc

Arc 🤝 Cycles: Multilateral clearing and settlement on Arc
# Partner Spotlights
# Community Spotlights

Cycles is making Arc a home chain for its obligation-netting network, settling B2B payment residuals in USDC.

Tim Baker
Tim Baker
Arc 🤝 Cycles: Multilateral clearing and settlement on Arc
Most B2B payment systems settle obligations one at a time, gross. A pays B, B pays C, C pays A, and each leg moves in full even when much of it cancels out. That ties up capital and multiplies the number of settlement events for the same underlying economic activity.
Cycles takes a different approach. It maps payment obligations across a network of counterparties, nets them down to the minimum required transfers, and settles only the residual. By making Arc its home chain, Cycles settles those residuals in USDC on Arc.
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Why this matters for Arc Arc is built for real economic activity: payments, treasury, and settlement. Cycles sits squarely on that axis. Where exchanges and lending venues build liquidity and credit markets, Cycles introduces a settlement primitive Arc didn't previously have a flag-bearer for: multilateral clearing and obligation netting. It points at a category Arc is well-suited to anchor, trade credit and clearing settled in stablecoins.
Cycles Pay, a B2B stablecoin clearing app for invoices, payroll, and supplier payments. A product focused on institutional use, Cycles Prime, brings the same netting model to trading firms and other institutional counterparties over time.
Who's behind it Cycles is led by Ethan Buchman, co-founder of Cosmos. The decision to build settlement on Arc reflects what Arc is designed for: a stablecoin-native chain where USDC is the settlement asset and finality is fast and predictable, the properties a clearing network needs.
What builders can explore on Arc
  • Settlement-aware B2B payment products
  • Treasury and supplier-payment tooling designed around netting rather than gross transfers
  • Applications that route recurring obligations into USDC settlement on Arc
Cycles Pay is currently in beta, and has an active points program. If you’d like to try it out, head over to  https://cycles.money/pay .
Learn more
  • Arc: arc.io
If you're building B2B payments, treasury, or settlement tooling on Arc, tell us what you're working on below.
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