Circle (CRCL), a leading stablecoin issuer, has recently completed the acquisition of Malachite, the consensus engine that will serve as the foundation for the upcoming Arc blockchain focused on payments. This strategic move was announced in a press release on Monday, with key members from Informal Systems, the software development firm behind Malachite, joining Circle as part of the acquisition.
While specific details about the financial terms of the deal were not disclosed by the involved parties, the acquisition aligns with Circle’s recent announcement of developing its own layer-1 blockchain dedicated to stablecoin operations. This initiative reflects a growing trend among asset issuers who are seeking to leverage the expanding stablecoin market, projected to reach a trillion-dollar valuation and revolutionize cross-border payments.
Malachite, constructed around the Tendermint consensus algorithm, prioritizes flexibility and accuracy in decentralized systems. Originally created by Informal Systems as a versatile foundation for blockchain infrastructure, Malachite emphasizes performance and security in its design. Notably, the consensus engine will remain open source under the Apache 2.0 license, enabling developers to utilize and enhance the technology as needed, as stated in the press release.
Informal Systems will continue its support for various use cases of Malachite while advancing its ongoing projects, which include developing tools for distributed systems and cross-chain infrastructure. This acquisition underscores Circle’s commitment to innovation and highlights its strategic positioning in the rapidly evolving blockchain and stablecoin ecosystem.
