Circle (CRCL), the firm behind the popular USDC stablecoin, has obtained Malachite, a consensus engine designed to power the upcoming Arc blockchain. The acquisition was made from Informal Systems, a software development company, according to an official statement released earlier this week.
As part of the agreement, several members of the Informal Systems team will transition to Circle. Financial details regarding the purchase price have not been disclosed by either company.
This development follows Circle’s recent announcement regarding its plans to create a new layer-1 blockchain specifically tailored for stablecoin-based financial activities. Circle currently manages the $65 billion USDC (USDC) token. This strategy mirrors a growing trend among digital asset issuers seeking to leverage the expanding stablecoin market. Stablecoins, which are cryptocurrencies pegged to assets like the U.S. dollar, are predicted to become a significant trillion-dollar industry, revolutionizing international payment systems.
Malachite is built utilizing the Tendermint consensus mechanism, prioritizing adaptability and accuracy within decentralized networks. Informal Systems conceived it as a highly functional and reusable building block for blockchain infrastructures, placing particular emphasis on optimal performance and robust security features.
According to the statement, Malachite will remain available as open-source software under the Apache 2.0 license. This allows developers to freely utilize and modify the technology. Informal Systems will continue to support existing Malachite applications and advance its other ventures, including solutions for distributed systems and cross-chain communication.
Further Reading: Why Circle, Stripe, and Others Are Launching Their Own Blockchains