The USDC stablecoin issuer, Circle, made headlines with its launch on NASDAQ under the symbol CRCL. This move is part of a broader plan that involves the creation of the Arc blockchain, a public stablecoin blockchain.

On Monday, the company announced the acquisition of Malachite, a consensus engine that will assist in the launch of Arc1, an open Layer-1 (L1) blockchain network for stablecoin financing, later this year.

Circle has noticed Malachite's consensus and verifiability efforts. A modular, precise, and efficient Byzantine Fault Tolerant (BFT) consensus engine based on the Tendermint algorithm is included.

The integration of Malachite with Circle is expected to enhance the performance, reliability, and security of stablecoin-based payments.

This synergy with Malachite's goal of creating a reliable, low-cost, and borderless financial infrastructure validates Circle's innovation in stablecoins, as revealed.

Ethan Buchman, CEO of Informal Systems, which created Malachite, stated that the purchase validates Malachite and its incubation strategy.

He emphasized that Malachite provides a "financial foundation for future development," ensuring that their technology meets objectives aligned with the mission.

Circle is cautious about expansion.

This purchase comes as Circle's metrics are on the rise. Circle's Chief Financial Officer, Jeremy Fox-Geen, stated that there has been an increase in institutional interest following the company's IPO and the GENIUS Act for a new stablecoin framework.

The circulation of USDC has increased by 90% compared to the previous year as of June 30, with the stablecoin issuer expecting an annual growth of 40%.

Circle reported a 53% increase in revenue from a total of $658 million. This increase is mainly due to interest income from the liquidity reserves of its USDC stablecoins and short-term investments.

Circle reported a net loss of $482 million due to non-cash costs related to the IPO. Jeremy Allaire stated that Circle is cautious and methodical regarding acquisitions. I don't think we should pursue massive and difficult acquisitions to expand business lines.

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