Circle Blockchain Update: Malachite Acquisition Sparks Stablecoin Revolution

2025-08-20
Circle Blockchain Update: Malachite Acquisition Sparks Stablecoin Revolution

Circle, the issuer of the USDC stablecoin, has announced a strategic acquisition that could redefine the landscape of blockchain-powered payments. 

The company recently revealed its purchase of Malachite, a high-performance consensus engine developed by Informal Systems. 

This move marks a significant milestone in Circle’s journey as it prepares to launch Arc, a purpose-built Layer-1 blockchain tailored for stablecoin finance.

This new acquisition in Circle blockchain technology reinforces Circle’s commitment to creating efficient, secure, and scalable financial infrastructure.

Arc is designed to enhance stablecoin-based transactions and global payment systems, bringing Circle’s vision of programmable money and frictionless cross-border settlements closer to reality.

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What Is Arc Blockchain?

Circle Blockchain Update - Bitrue

Source: Arc on X

Arc is a Layer-1 blockchain engineered specifically for stablecoin integration. By incorporating Malachite’s consensus engine, Arc will feature:

1. High-performance stablecoin settlement with improved reliability and speed.

2. Modular architecture for developers to build Web3-based payment applications.

3. Interoperable solutions to strengthen financial infrastructure across blockchains.

4. Open-source accessibility, as Malachite remains available under the Apache 2.0 license.

Read Also: Japan’s First Stablecoin: Why Circle Is Involved

Circle emphasized that Arc’s software will be released under a permissive license, ensuring that developers worldwide can contribute, extend, and innovate on top of the platform.

This open approach fosters industry-wide collaboration and accelerates advancements in digital finance.

Circle Blockchain Update - Bitrue

Source: C-Sharpcorner

Circle Partnered with Malachite for Stability and Innovation

The decision for Circle to partner with Malachite highlights a shared mission: building trusted, accessible, and decentralized financial systems.

According to Informal Systems CEO Ethan Buchman, the acquisition validates Malachite’s incubation model and provides Circle with a robust foundation for future growth.

Several Informal Systems employees will join Circle to help develop Arc further, while Informal will continue supporting Malachite in other applications, including DeFi, custody, and interoperability projects.

Read Also: Stripes Partners with Paradigm! What Are They Building?

Strategic Growth Amid Expanding USDC Adoption

This acquisition comes during a period of rapid growth for Circle. As of June 30, USDC in circulation has surged 90% year-over-year, reaching $61.3 billion.

Financially, Circle reported a 53% increase in revenue, largely driven by interest from USDC reserves and short-term investments.

Despite a reported net loss of $482 million due to IPO-related charges, Circle remains strategically focused. CEO Jeremy Allaire underscored that the company is pursuing measured and mission-aligned acquisitions rather than large-scale expansions that could dilute its vision.

Circle Blockchain Update - Bitrue

Source: TradingView

Looking Ahead: Arc’s Testnet in 2025

Circle has confirmed that Arc will begin private testnet operations soon, with a public testnet to follow. By 2025, Arc aims to integrate advanced governance mechanisms, stablecoin-enabled financial services, and next-generation consensus features.

With this new acquisition, Circle blockchain efforts are entering a pivotal stage. 

Arc is positioned to become a foundational infrastructure for the internet, supporting seamless, 24/7 global settlement systems as natural as sending a message online.

Read Also: Japan Embraces Crypto in Corporate Culture: Leads the Crypto Race?

Conclusion

Circle’s acquisition of Malachite marks a bold step toward reshaping the digital payments landscape.

By integrating cutting-edge consensus technology, Circle is preparing Arc to serve as the backbone for stablecoin-driven finance and borderless transactions.

Stay updated with the latest crypto and blockchain market insights by following the Bitrue blog.

FAQ

What is Circle’s Arc blockchain?

Arc is Circle’s upcoming Layer-1 blockchain designed to enhance stablecoin-based payments and digital financial infrastructure, powered by the Malachite consensus engine.

Why did Circle acquire Malachite?

Circle acquired Malachite to strengthen Arc’s performance, reliability, and security while ensuring open-source innovation in the blockchain ecosystem.

How will this acquisition impact USDC?

The integration will improve settlement speed, scalability, and interoperability for USDC transactions, solidifying Circle’s role in global digital payments.

When will Arc launch?

Arc is expected to enter testnet phases in 2025, with ongoing development for governance, consensus, and stablecoin-enabled services.

Is Malachite still open-source?

Yes, Malachite remains open-source under the Apache 2.0 license, ensuring accessibility for developers and institutions.

Disclaimer: The content of this article does not constitute financial or investment advice.

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