Holding has signed for the Gunners on a long-term deal from League One side Bolton Wanderers.
The 20-year-old won Bolton's Player of the Season award last season in the Trotters' dismal campaign in the Championship that saw them relegated to the third tier of English football.
The young defender made 30 appearances for Bolton last season and also has two England Under-21 caps.
Arsenal's new signing will be hoping that he can challenge for a first-team spot at the Emirates next season.