Circle acquires IBM's 1,000 blockchain patents to fortify USDC

Circle Internet Group acquired nearly 1,000 blockchain patents from IBM, vaulting the USDC issuer to the top US holder of blockchain intellectual property as it builds out its internet financial system.

"Intellectual property is critical to advancing our mission and expanding adoption of onchain infrastructure," Sarah Wilson, General Counsel and Corporate Secretary at Circle, said in a statement.

The portfolio comprises more than 680 patent families covering blockchain technology, banking, financial services, insurance, enterprise infrastructure, supply chain verification and secure cloud operations, according to a press release. IBM held 790 blockchain patents as of December 2025, per patent analytics firm PatSnap. Financial terms of the deal were not disclosed.

The acquisition gives Circle a defensive IP moat for USDC, its Circle Payments Network, Arc blockchain and a suite of agentic financial tools. Circle and IBM plan to explore additional commercial opportunities, though the companies did not specify whether IBM retained licensing rights.

Circle received its first patent in December 2023, covering parallel block processing in blockchains. It earlier joined the LOT Network to shield its products from patent-assertion firms.

The expanded IP portfolio directly supports Circle's foundation for building the internet financial system, including USDC — the world's second-largest stablecoin by market cap — as well as its enterprise Arc blockchain and financial tools designed for AI agents.

CRCL shares rose 2.5% in premarket trading following the announcement.

The deal marks a significant shift in blockchain patent ownership. IBM, a pioneer in the space, had accumulated one of the largest blockchain patent portfolios globally before the sale. The transfer positions Circle alongside other major blockchain patent holders such as Advanced New Technologies and Bank of America.

For the stablecoin sector, the acquisition highlights a maturation of competitive dynamics where intellectual property becomes a strategic asset. Circle now holds a portfolio that spans not just stablecoin technology but broader financial infrastructure, potentially raising barriers for new entrants and strengthening its position against rival Tether.

This article is for informational purposes only and does not constitute investment advice.