Circle Internet Group, the leading global provider of fintech solutions and issuer of the USDC stablecoin, announced its acquisition of the high-performance consensus engine Malachite developed by Informal Systems. This move comes as Circle prepares to launch its new Arc network, a layer-one blockchain specifically designed for stablecoin applications and digital finance.
Malachite is one of the most advanced consensus engines currently available, relying on a BFT mechanism written in Rust, with a modular design that allows it to be reused across different systems. The engine is characterized by its high capacity to process thousands of transactions per second with a final settlement time of less than a second, while maintaining high reliability and advanced security. Despite its transfer to Circle's ownership, its codebase will remain available as open source under the Apache 2.0 license, ensuring continued innovation and development of applications built on it within the blockchain community.
The Arc network, based on this engine, represents a qualitative leap towards reshaping digital financial infrastructures. It is designed to be compatible with the Ethereum environment, while at the same time relying on an independent model that makes USDC the native gas currency, providing users with low and predictable fees in dollars. The network will also offer instant conversion capabilities between stablecoins through an integrated exchange rate engine, along with an optional privacy feature that allows for concealing transaction details when necessary, while maintaining regulatory compliance mechanisms.
The launch of the Arc network is scheduled to occur in phases, starting with a private testnet in the coming weeks, followed by a public testnet in the fall of 2025, with a trial launch of the Mainnet expected in 2026. This plan reflects Circle's ambition to build an integrated, low-cost, cross-border financial system where stablecoins become the foundation for global digital payments.
Observers consider that this acquisition represents not just a technical step, but a strategic transformation that positions Circle more strongly within the decentralized financial system. While Arc remains compliant with the Ethereum ecosystem, Circle's ownership of its own chain grants it greater independence regarding execution speed, transaction costs, and infrastructure management. It also opens the door for broader adoption by institutions seeking reliable and stable payment solutions away from the volatility of other crypto assets.
With this step, Circle aims to outline the features of a new generation of blockchain dedicated to payments, where the concept of stablecoins evolves from merely a means of trading within the digital ecosystem to a cornerstone of a more efficient and transparent global financial structure.
