Circle, the issuer of the dollar-denominated stablecoin USDC, acquired the early developers of the Excella Network, but the price of the Excella (AXL) token fell. This is attributed to the fact that only developers and technology were included in the transaction, excluding the token.
According to industry sources on the 16th, Circle has signed a contract to acquire the exclusive intellectual property (IP) of the Interop Labs team. The acquisition is expected to close early next year. Interop Labs was an early developer and key contributor to the Excella Network. With this acquisition, Sergey Gorbunov, co-founder of the Excella Protocol and CEO of Interop Labs, will join Circle.
Related articles
- The stablecoin infrastructure war... Avalanche expands its presence in global institutions [Altcoin Focus]
- Amidst discussions about the merger of Dunamu and Nepa, Mantle draws attention… Exchange-linked models emerge [Altcoin Focus]
- Beyond remittance coins, towards RWA infrastructure… Stellar Lumens' rebound points [Altcoin Focus]
- Will "Big Brother" Bitcoin Catch Up? This Coin Embraces Satoshi's Spirit? [Altcoin Focus]
The Excella Network is a blockchain that provides interoperability infrastructure that connects different blockchains. Just as the App Store and Google Play require different code for the same application, blockchains also have different structures and specifications, making it difficult to seamlessly transfer assets and applications. Excella supports an environment that allows developers to build apps across multiple blockchains.
Through this acquisition, Circle aims to create an environment where digital assets can move seamlessly, securely, and compliantly across over 100 blockchains. By incorporating Interop Labs' talent, Circle plans to accelerate the development of its own blockchain, Arc, and Cross-Chain Transfer Protocol (CCTP).
However, Circle clarified that this transaction is limited to the Interop Labs team and its exclusive intellectual property rights. Circle explained, "Even if the Interop Labs team joins Circle, the Excella Network, the Excella Foundation, and the AXL token will continue to operate independently under the same community governance system."
Amid this news, coupled with a general weakness in the cryptocurrency market, the price of AXL plummeted. According to CoinMarketCap, a global cryptocurrency market monitoring site, AXL was trading at $0.1108 at 2:30 PM today, down 15.06% from the previous day. AXL is a token used for transaction fee payments and rewards on the Excella Network. AXL is listed on the Korean Won markets of Upbit and Bithumb.
While token prices have declined in the short term, the growing use of stablecoins is fueling the growing importance of inter-blockchain asset transfer technology. Indeed, the use of interoperability technology, centered around the Excella Foundation, continues. Fair Square Lab, a domestic digital asset infrastructure company, announced today that it signed a business agreement with the Excella Foundation and cryptocurrency custody company KDAC to build a multi-chain-based stablecoin infrastructure. The strategy is to combine global interoperability technology with domestic financial infrastructure to create a stablecoin model that can be linked to multiple blockchains.
- Reporter Do Ye-ri
< Copyright ⓒ Decenter. Unauthorized reproduction and redistribution prohibited >
