Circle, the issuer of the USDC stablecoin, announced on December 15, 2025, that it has signed an agreement to acquire the team and proprietary intellectual property of Interop Labs, a core development group behind the Axelar Network.
The move is designed to accelerate Circle’s cross-chain capabilities and deepen USDC’s interoperability across major blockchain ecosystems.
Acquisition Focus and Scope
Circle said the acquisition centers on talent and proprietary technology, rather than the Axelar ecosystem itself. The company clarified that the deal does not include the Axelar Network, the Axelar Foundation, or the AXL token. Axelar will continue to operate independently under community governance, with its open-source intellectual property remaining publicly available.
The transaction is expected to close in early 2026. Once completed, Circle plans to integrate the Interop Labs team into its internal engineering efforts, particularly those tied to cross-chain infrastructure.
To ensure continuity, Common Prefix, another primary contributor to the Axelar Network, will assume responsibility for Interop Labs’ ongoing work related to the Axelar protocol.
Strengthening Circle’s Cross-Chain Stack
Circle said the acquisition will directly support development of its Cross-Chain Transfer Protocol (CCTP) and its upcoming Arc blockchain, which is aimed at enterprise and institutional use cases. By bringing interoperability development in-house, Circle gains direct oversight over a critical layer that facilitates the movement of USDC across blockchains.
The company framed this as a strategic step to improve security, reliability, and compliance, particularly as USDC continues to handle large transaction volumes across decentralized and institutional platforms.
Improving USDC Interoperability
A core objective of the deal is to make USDC transfers between blockchains faster, smoother, and more cost-efficient. Circle highlighted use cases across networks such as Ethereum, Solana, and Avalanche, where seamless cross-chain movement is increasingly important for both developers and end users.
Circle also confirmed that the acquired technology will be used to ensure that assets issued on the Arc blockchain are fully interoperable with other networks, reinforcing a design philosophy built around multichain compatibility rather than ecosystem lock-in.
Strategic Bet on a Multichain Future
By integrating the team behind one of the most widely used cross-chain communication frameworks, Circle is signaling a long-term commitment to a multichain financial system. The company described interoperability as a foundational requirement for the next phase of stablecoin adoption, especially for global payments, on-chain finance, and decentralized applications.
The acquisition underscores Circle’s view that USDC’s role as a digital dollar depends on frictionless movement across blockchains, backed by infrastructure that meets institutional standards for security and regulatory compliance.
