Circle buys IBM blockchain patents, becomes U.S. leader

Circle announced it has acquired IBM’s blockchain patent portfolio, adding more than 680 patent families and nearly 1,000 issued patents. Financial terms of the transaction were not disclosed.

The portfolio covers blockchain technology and applications for banking, financial services, enterprise infrastructure, supply chain verification and secure cloud operations. Circle said the patents will support development of USDC, the Circle Payments Network, Arc and a range of on-chain financial services and AI-powered financial tools.

Circle plans to explore commercial opportunities with IBM tied to the acquired patents and described the purchase as strengthening its intellectual property position as it expands payments and enterprise blockchain offerings.

IBM invested in enterprise blockchain for more than a decade, developing solutions across banking, trade finance and supply chain management. The patents reflect that research and add decades of IBM work to Circle’s intellectual property holdings.

Sarah Wilson, Circle’s general counsel and corporate secretary, described intellectual property as ‘central to advancing the company’s mission to expand adoption of on-chain financial infrastructure’ and said IBM’s history of innovation will help build infrastructure for global internet-native finance.

After the announcement, Circle shares rose 4.84% to $65.38 during Monday trading, with about 2.54 million shares changing hands. The stock remained below its May highs. The daily Relative Strength Index rose to 45.01, below the neutral 50 level.

Company officials said the acquisition positions Circle as a leading U.S. holder of blockchain patents and provides a foundation for its longer-term infrastructure and product development plans.