Circle has made a major move in the blockchain space by acquiring Malachite, a powerful consensus engine, to support the development of its new Arc blockchain. This acquisition marks a strategic step in Circle’s ongoing expansion into the infrastructure layer of stablecoin finance.

Circle Expands with Arc Blockchain Initiative

The acquisition of Malachite was confirmed on Monday via a press release from Informal Systems, the original developers of Malachite. While neither company shared exact deal terms or pricing, key personnel from Informal Systems will be joining Circle as part of the integration process.

Malachite will serve as the foundation for Circle’s upcoming Arc blockchain, a payments-centric Layer 1 blockchain. The news follows Circle’s recent announcement of its Arc project and builds on the growing trend of major fintech firms launching proprietary blockchain infrastructure. Companies like Circle and Stripe are part of a broader movement among digital asset providers to assert more control over scalability, security, and network design.

How Malachite Fits Into Circle’s Blockchain Vision

Originally built using the Tendermint consensus algorithm, Malachite was engineered to prioritize performance, correctness, and security. Informal Systems designed it to be a flexible and reusable module in decentralized applications, laying the groundwork for high-integrity blockchain services.

For Circle, which manages the $65 billion USDC stablecoin, integrating Malachite enables it to develop a faster, more reliable environment specifically tailored for stablecoin-driven transactions. With Malachite’s infrastructure, Arc is poised to streamline settlements, reduce transaction costs, and better serve the cross-border payments market.

Open Source Collaboration and Continued Development

Importantly, Malachite will continue to be freely available under the Apache 2.0 open-source license. This approach allows developers worldwide to use and expand upon the consensus engine. According to the press release, Informal Systems will still maintain and support other applications of Malachite, including broader tools for distributed systems and cross-chain communication.

The partnership is expected to fuel innovation across the decentralized finance landscape, supporting not only Circle’s ambitions but also the open-source community’s need for scalable, modular, and robust blockchain technology.

Circle strengthens its blockchain capabilities by acquiring Malachite, gearing up for the Arc network launch.

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