Circle, the company behind the USDC stablecoin, announced on July 27 that it has acquired IBM's blockchain patent portfolio. The deal includes more than 680 patents and nearly 1,000 patent assets worldwide. The move gives Circle a deep library of intellectual property covering distributed ledger technology, smart contracts, and enterprise blockchain systems.
What Circle is getting
The portfolio spans multiple jurisdictions and includes patents IBM filed over the past decade as it built its Hyperledger-based blockchain platform. Circle now holds one of the largest blockchain patent collections in the industry. The company said the acquisition will help it protect its technology and expand its offerings.
Circle issues USDC, the second-largest stablecoin by market cap. As regulators around the world tighten rules on digital assets, owning a strong patent portfolio can serve as both a defensive shield and a licensing revenue source. It also signals that Circle is thinking long-term about its technology stack.
The IBM connection
IBM was an early corporate backer of blockchain, building supply-chain and trade-finance solutions on Hyperledger Fabric. Over the years it amassed a sizable patent portfolio. Selling it to Circle lets IBM monetize that work while Circle gains a ready-made IP moat.
Neither company disclosed the financial terms of the deal. Circle said it plans to integrate the patents into its existing research and development efforts. The acquisition closed on July 27.
