Figment is targeting the institutional settlement market by offering outsourced validator operations on the Arc blockchain. By providing Managed Validator Services, the firm intends to allow select institutions to participate in network validation without the capital expenditure or technical overhead required to build and maintain proprietary in-house infrastructure. This move coincides with Arc's transition to its public mainnet launch.
Institutional Participation via Managed Validator Services
The company is positioning its Managed Validator Services as a streamlined entry point for institutions seeking to secure a validator seat on Arc, an EVM-compatible Layer 1 blockchain designed for stablecoin payments and tokenized real-world assets. Having served as the first third-party validator during Arc's testnet phase in March 2026, Figment is leveraging its existing presence to support the network's transition. The firm notes that its validator infrastructure currently meets the security, eligibility, and compliance standards established by Circle for Arc's permissioned validator set. This service aims to simplify the technical requirements for entities looking to engage with the network's underlying economic structure.
Transitioning from Proof-of-Authority to Proof-of-Stake
As the Arc network evolves, Figment is offering a path for institutions to navigate the shift from Proof-of-Authority fee rewards to Proof-of-Stake staking rewards. This transition typically requires significant technical investment, which Figment claims to mitigate through its outsourced model. The company, which serves over 1,500 institutional clients including asset managers and custodians, is utilizing its scale as a non-custodial staking provider to manage these complex operational requirements. By handling the infrastructure, Figment enables clients to focus on the economic outcomes of validation—such as earning rewards on digital assets—rather than the continuous management of the hardware and software protocols necessary to maintain a secure validator node on the blockchain.
Key Takeaways
- Figment is offering Managed Validator Services to select institutions on the Arc blockchain following its mainnet launch.
- The company's infrastructure meets Circle's eligibility, security, and compliance standards for Arc's permissioned validator set.
- The service is designed to help institutions transition from Proof-of-Authority fee rewards to Proof-of-Stake staking rewards.
FinanceInsyte's Take
In our view, Figment is attempting to lower the barrier to entry for institutional blockchain participation by decoupling economic rewards from technical complexity. By aligning its infrastructure with Circle's compliance standards, Figment is signaling that institutional-grade validation requires more than just uptime; it requires rigorous regulatory and security alignment. This service suggests that as Layer 1 networks like Arc mature, the "infrastructure-as-a-service" model will become the primary method for traditional finance entities to engage with decentralized settlement layers.
Questions & Answers
How does Figment's service impact the technical requirements for institutions on Arc?
The service allows institutions to participate as validators without the need to stand up or operate their own in-house infrastructure, effectively outsourcing the technical management to Figment.
What specific blockchain functions is the Arc network designed to support?
Arc is an EVM-compatible Layer 1 blockchain built specifically for institutional settlement, stablecoin payments, and the tokenization of real-world assets.
What compliance benchmark has Figment met for the Arc network?
Figment's validator infrastructure meets the eligibility, security, and compliance standards set by Circle for the network's permissioned validator set.
How does the economic model for validators on Arc change over time?
Institutions are expected to evolve from receiving Proof-of-Authority fee rewards to participating in Proof-of-Stake staking rewards.
Source: Businesswire
