Circle is buying IBM's blockchain patent portfolio — more than 680 patent families and nearly 1,000 issued patents worldwide. The USDC issuer says the deal positions it as the leader in blockchain patent holdings in the United States. Neither side disclosed what Circle paid.
Circle will acquire IBM's blockchain patent portfolio, the USDC issuer said on Monday. No financial details for the transaction appeared in Circle's announcement.
The portfolio comprises more than 680 patent families and nearly 1,000 issued patents worldwide. Circle said the acquisition positions it as the leader in blockchain patent holdings in the United States, with an intellectual property position that directly supports the fintech's foundation for building the internet financial system.
What Circle actually bought
A patent family groups related filings that protect one invention across different countries, so 680 families and nearly 1,000 issued patents do not represent 1,000 separate technologies. The rights still hand Circle a wider intellectual-property base across areas used in digital finance.
IBM's blockchain focus has leaned heavily into supply chain applications, which seek to increase transparency in tracking products across numerous intermediaries. In recent years it has slowed its patent filings from peak years 2018-2019, when more than 500 blockchain-related patents were filed, research firm GreyB said.
Where the patents fit Circle's stack
Circle said the portfolio will support USDC, Circle Payments Network and Arc alongside its onchain products. According to Cointelegraph, Sarah Wilson, general counsel and corporate secretary at Circle, said the acquisition "expands Circle's ability to advance the infrastructure that powers global, internet-native finance".
However, Circle did not identify which patents directly apply to stablecoin issuance, cross-border settlement or blockchain networks, nor whether IBM retained licences or regional rights. IBM and Circle plan to explore further commercial opportunities after the transfer, without describing them.
CRCL rises on the day, down over the year
CRCL stock was up more than 2% in premarket activity on Monday following the announcement, according to Yahoo Finance data. The shares have nevertheless declined 66% in the last 12 months to trade at $62.36 per share.
IBM had been one of the largest U.S. blockchain patent holders before the sale, along with Bank of America. Its stock is down 18% over the past year, trading at $214.19 on July 27.
Circle, by contrast, received its first patent, covering blockchain data processing, in December 2023.
Sources: Cointelegraph, crypto.news, CryptoProwl
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