Circle, the issuer of the stablecoin USDC, is acquiring Interop Labs, a key contributor to the decentralized interoperability network Axelar. This acquisition marks Circle's expansion beyond a stablecoin issuer into a blockchain infrastructure company amid the rapidly expanding multi-chain landscape.
Circle announced that it has entered into an agreement to acquire the Interop Labs team and its exclusive intellectual property. The transaction is expected to close in early 2026. However, the acquisition excludes the Accela Network itself, the AXL token, and the Foundation's operations, which will remain community-driven and structured as before. Interop Labs is the core development organization behind the Accela Network, which enables cross-chain messaging and asset transfers.
The core of this acquisition lies in technology integration. Circle plans to integrate Interop Labs' interoperability technology with its multi-chain blockchain, Arc, and Cross-Chain Transfer Protocol (CCTP). This will enable Arc-based assets to seamlessly move across various blockchain environments, while also strengthening the tools and platform capabilities that enable developers to more easily build multi-chain applications.
Interop Labs' responsibility for open-source network development will be taken over by Common Prefix, another contributor to Axela. By separating network operations, Circle intends to maintain both technological continuity and decentralization. Circle has also made it clear that it will not exercise control over the AXL token or the Axela network.
Circle currently issues USDC, the world's second-largest stablecoin by market capitalization. USDC accounts for approximately 25% of the approximately $310 billion global stablecoin market. This acquisition is seen as a stepping stone for USDC to go beyond simply providing a means of payment and establish itself as the foundational infrastructure for multi-chain finance and on-chain applications.
This transaction aligns with the recent expansion of stablecoin issuers into platforms and development tools. As the blockchain ecosystem transitions from a single-chain-centric to a multi-chain structure, interoperability technologies that break down boundaries between chains are becoming essential, not optional. Circle's latest move demonstrates that the infrastructure race to lead the multi-chain era has already entered the next phase.
