Circle has acquired IBM's blockchain patent portfolio, becoming the largest holder of blockchain patents in the U.S. This move aims to enhance its financial solutions.
Acquisition Highlights
- Circle has acquired over 680 patent families and nearly 1,000 blockchain patents from IBM, positioning itself as the largest blockchain patent owner in the U.S.; financial terms of the deal are not disclosed.
- The patents cover critical areas including banking, insurance, enterprise infrastructure, supply chain verification, and secure cloud operations.
- Circle plans to integrate these patents into its USDC, Circle Payments Network, Arc blockchain, and AI-powered financial solutions.
Circle, the issuer of the popular USDC digital dollar, has secured IBM's extensive blockchain patent portfolio, which has been developed over a decade. This acquisition, announced on July 27, gives Circle access to more than 1,000 IBM blockchain patents globally.
Patents grant holders exclusive rights to specific inventions, allowing them to control their use. For example, owning a patent for a blockchain transaction processing method enables the holder to dictate its application. IBM has maintained a competitive edge in this space since it began exploring enterprise blockchain in the mid-2010s.
As of December 2025, IBM led the U.S. market with 790 blockchain patents, significantly ahead of Bank of America, which has around 200. Circle, which received its first patent in December 2023 for a parallel blockchain data processing method, has quickly climbed to the forefront of U.S. patent holders.
Circle's official statement highlights that the portfolio includes over 680 patent families and nearly 1,000 patents covering essential blockchain technologies, financial services, and more. The company plans to deploy these patents across its operations to bolster its offerings, including USDC and its proprietary Arc blockchain, designed for institutional finance.
Sarah Wilson, Circle's General Counsel, emphasized the importance of intellectual property in furthering the company's mission and enhancing the adoption of on-chain infrastructure. She noted IBM's role as a technological innovator and how this acquisition strengthens Circle's ability to support global internet-native finance.
Prior to this acquisition, Circle had joined the LOT Network, which protects members from patent litigation by entities that acquire patents solely for profit. With its new patent portfolio, Circle has the potential to pursue legal strategies, although it has not indicated any plans to do so.
IBM is also involved with the Open Standard, a consortium supporting the Open USD stablecoin, which launched on June 30, garnering support from major companies like Visa and Mastercard. The model for Open USD differs from Circle's revenue structure for USDC, adding complexity to IBM's relationship with both entities. Following the acquisition announcement, Circle's shares rose by 2.57% on Monday.
