USDC Issuer Circle Acquires Malachite to Build New Arc Blockchain, Improving Speed and Security for Stablecoins

Circle Acquires Malachite To Build Arc Blockchain For Stablecoin Payments

Circle, the company behind the USDC stablecoin, has acquired the Malachite consensus engine from blockchain developer Informal Systems to power its upcoming Arc layer-1 blockchain.

The Arc network is designed to support stablecoin-based financial services and high-performance digital payments, with a focus on reliability, security, and interoperability for Web3 applications.

How Will Malachite Improve Stablecoin Transactions

Malachite, built on the Tendermint consensus algorithm, is expected to enhance transaction speed and security on Arc L1.

The integration will allow Circle to provide more reliable and cost-efficient stablecoin payments, while maintaining an open-source approach.

The Malachite codebase will remain publicly accessible under the Apache 2.0 licence, enabling developers to continue building on the technology and encouraging innovation across the blockchain industry.

Team Integration And Strategic Moves

As part of the deal, nine Informal Systems employees will join Circle to support the development of Arc.

Ethan Buchman, CEO of Informal Systems, said:

“This acquisition is a strong validation of Malachite and of our incubation model. Circle’s adoption of Malachite provides a high-impact use case, a robust financial foundation for future development, and ensures our technology contributes to meaningful, mission-aligned outcomes.”

Informal Systems will continue to support Malachite for other projects and focus on distributed systems, cross-chain tools, and DeFi infrastructure.

What Arc L1 Will Offer To Developers

The Arc platform is expected to launch its testnet in 2025, offering modular architecture and interoperable solutions for developers building payment and financial applications on Web3.

The network will also incorporate advanced consensus features, on-chain governance, and integrations for stablecoin-enabled services, reflecting a shift towards blockchain systems designed specifically for financial use.

Open-Source Commitment Remains Strong

Despite the acquisition, Malachite will remain an open-source project, allowing the wider blockchain ecosystem to access and contribute to its development.

Ongoing support from both Circle and Informal Systems aims to drive the evolution of digital finance standards and promote trust in blockchain-based financial systems.

The deal positions Circle to expand its blockchain capabilities while reinforcing Malachite’s mission to create accessible, decentralised financial infrastructure.