The acquisition of nearly 1,000 blockchain patents from IBM by Circle could intensify challenges for the stablecoin market and blockchain infrastructure, according to Jeff John Roberts, finance and cryptocurrency editor at Fortune.
Circle made the announcement regarding the deal on July 27. The patent portfolio encompasses blockchain technologies, banking and financial services, insurance, corporate infrastructure, supply chain verification, and secure cloud operations.
Circle has acquired fundamental assets from the @IBM blockchain patent portfolio, including 680+ patent families and nearly 1,000 issued patents worldwide.
The acquisition makes Circle the leading U.S. blockchain patent holder and strengthens the foundation behind USDC, CPN,… pic.twitter.com/lp6F6z55aw
— Circle (@circle) July 27, 2026
Circle stated that the acquisition will support the development of USDC, the Circle Payments Network, the Arc blockchain, and financial tools for AI agents.
Roberts believes this move could serve as a theoretical leverage point against competitors. He assesses that the company might demand licensing fees, intimidate startups with litigation risks, or leverage patents in negotiations with banks and payment firms.
Roberts also pointed out a separate risk posed by a new competitor to Circle and Tether, known as Open USD. In June, Open Standard announced the launch of the OUSD stablecoin, backed by Stripe, Visa, BlackRock, and over 140 other companies.
This project aims to return a significant portion of income from reserves to participants after deducting fees. Such a model could potentially compete with Circle's business, where income from USDC reserves remains a key revenue source.
Roberts suggests that Circle's extensive patent portfolio could serve as a bargaining chip amid the rise of corporate and banking stablecoin initiatives. However, he does not provide evidence that the company intends to use these patents for lawsuits or pressure on open-source developers.
Officially, Circle describes the deal as a way to enhance infrastructure for "internet-native finance." The company has acknowledged its status as the largest holder of blockchain patents in the U.S. Journalists at CoinDesk found no public information on how many patents are issued specifically in the U.S., whether IBM retains licensing rights, or whether the company plans to license or use the portfolio in disputes.
For 2025, Circle reported a combined revenue and reserve income of $2.7 billion, marking a 64% increase from the previous reporting period. However, the company also experienced a net loss of $70 million due to $424 million in stock-based compensation expenses following its IPO, while its operating profit remained positive at around $157 million.
Additionally, in July, analysts at JPMorgan suggested that the new agreement between Circle and Coinbase with Hyperliquid could negatively impact USDC and pose risks to the companies involved.