Circle, the issuer of USDC, plans to implement an on-chain refund mechanism on its institutional-grade blockchain, Arc. This feature aims to cater to the needs of institutional users such as banks and treasury teams. The mechanism will allow for escrowed refunds in cases of fraud or disputes, with decisions made by authorized arbitrators. This initiative supports negotiated refunds or peer-to-peer payments, balancing transaction immediacy with compliance. Circle believes this move will address stablecoin regulatory requirements and potentially accelerate the adoption of blockchain payments by traditional financial institutions.