Circle Acquires Malachite to Power Arc, Its Stablecoin-Focused Blockchain

Circle is making a bold play in the stablecoin space by acquiring Malachite, a consensus engine designed for high performance and security. This acquisition is a key step in powering Arc, Circle’s upcoming blockchain built specifically for stablecoin finance.

• Circle acquires Malachite from Informal Systems to support Arc blockchain.
• Nine Informal Systems employees will join Circle as part of the deal.
• Malachite, based on the Tendermint algorithm, remains open source under Apache 2.0.
• Arc blockchain represents Circle’s entry into the layer-1 ecosystem, with a focus on payments and stablecoins.

Circle, the company behind the $65 billion USDC stablecoin, announced it has acquired the Malachite consensus engine from Informal Systems. The acquisition brings over the technology, intellectual property, and nine team members, signaling Circle’s commitment to building out its in-house blockchain capabilities. While financial details weren’t disclosed, the move comes just one week after Circle unveiled its plan for Arc, a new layer-1 blockchain tailored for stablecoin-based payments and financial applications.

Malachite was designed with flexibility and correctness in mind, leveraging the Tendermint consensus algorithm to provide strong performance and reliability in decentralized systems. By integrating Malachite into Arc, Circle is positioning its blockchain to handle high transaction volumes and offer the kind of secure, scalable infrastructure necessary for global stablecoin adoption. Importantly, Malachite will remain open source under the Apache 2.0 license, allowing developers across the ecosystem to continue building on and extending its technology.

For Informal Systems, the sale allows the company to continue supporting Malachite in other use cases while focusing on its broader mission of developing tools for distributed systems and cross-chain infrastructure. This ensures Malachite’s impact will extend beyond Arc, serving as a reusable building block for decentralized networks.

Final Thought

Circle’s acquisition of Malachite highlights its long-term vision: owning not just the most widely used dollar-backed stablecoin, but also the infrastructure to support the next era of digital money. With Arc on the horizon and stablecoins projected to become a trillion-dollar market, Circle is positioning itself at the center of a financial transformation that could reshape global payments.