Circle Internet Group, Inc. (NYSE: CRCL), the company behind USDC, has acquired Malachite, the high-performance consensus engine developed by Informal Systems, to power the launch of Arc, a new Layer-1 blockchain network dedicated to stablecoin finance.

Arc – A Purpose-Built Network for Stablecoins

  • Scheduled for testnet launch later this year, Arc will leverage Malachite’s Byzantine Fault Tolerant (BFT) consensus engine built on the Tendermint algorithm.

  • Designed to deliver greater performance, reliability, and security in stablecoin transactions.

  • Represents a step forward in creating infrastructure specialized for stablecoin-based finance.

Informal Systems’ Perspective

  • Informal Systems, known for its work in blockchain infrastructure, focuses on building trust in finance and software systems.

  • Although acquired, the Malachite repository will remain open source, ensuring continued industry innovation.

  • Several Informal team members will join Circle to accelerate Arc’s development, while Informal continues advancing its other projects.

Strategic Significance

  • The move reinforces Circle’s ambition to be the global leader in stablecoins, with Arc envisioned as the backbone for stablecoin-powered applications.

  • Signals a broader industry trend toward specialized blockchain infrastructures designed for specific financial use cases.

Conclusion

With the Malachite acquisition, Circle strengthens its technical capabilities and lays the foundation for Arc – a dedicated Layer-1 blockchain for stablecoin finance, ushering in a future of secure, transparent, and efficient digital finance.

Stablecoins are evolving from payment tools into the foundation of global financial infrastructure.


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