Circle buys IBM's 680 blockchain patents to lead US IP holdings

Circle Internet Group (CRCL) acquired more than 680 patent families and nearly 1,000 issued patents from IBM's blockchain portfolio, the companies said Monday, making the stablecoin issuer the largest holder of blockchain patents in the United States.

"Intellectual property is critical to advancing our mission and expanding adoption of onchain infrastructure," Sarah Wilson, General Counsel and Corporate Secretary at Circle, said in a statement. "IBM has been a pioneer in technological innovation, and this acquisition expands Circle's ability to advance the infrastructure that powers global, internet-native finance."

The portfolio spans foundational blockchain technology, banking, financial services, insurance, enterprise infrastructure, supply chain verification and secure cloud operations. Circle said the patents will support development of its USDC stablecoin, Circle Payments Network and Arc enterprise blockchain. Neither company disclosed the purchase price.

The deal transfers the top US blockchain patent position from IBM to Circle. Patent Sight data published by Statista ranked IBM first among owners of active US blockchain patent families in 2022, ahead of Ant Group. Circle received its first patent, covering blockchain data processing, in December 2023. Circle and IBM said they would explore additional commercial opportunities.

Why the market response was muted

CRCL shares rose 2.8% in premarket trading to about $63.60, a modest move compared with the 5% gain on July 10 when the Office of the Comptroller of the Currency cleared Circle's national trust bank application. The stock closed Friday at $62.36, down 66% from its record close of $263.45 after the June 2025 IPO.

The muted reaction reflects investor focus on regulatory catalysts rather than IP acquisitions. Twenty-seven analysts still average a $120.76 price target, nearly double Friday's close, despite the post-IPO decline. Circle reports second-quarter results on Aug. 5, with trailing revenue of $2.86 billion and a net loss of $14.3 million.

IBM shares rose 1.6% premarket to about $218. The stock has declined 18% over the past 12 months.

What the patents cover

The acquired estate includes patents covering banking, financial services, insurance, enterprise infrastructure, supply chain verification and secure cloud operations. Circle said the portfolio directly supports its foundation for building the internet financial system, including USDC, Circle Payments Network, Arc and a growing suite of onchain products and agentic financial tools.

The deal positions Circle's intellectual property moat against competitors including Paxos and Coinbase, both of which operate stablecoin products. Circle's USDC is the second-largest stablecoin by market capitalization, behind Tether's USDT, according to DefiLlama data.

This article is for informational purposes only and does not constitute investment advice.