Circle, the stablecoin issuer, has entered into an agreement to acquire the team and proprietary technology of Interop Labs, integrating a key contributor to the Axelar Network into its infrastructure division.
The deal, anticipated to close in early 2026, includes the personnel and intellectual property of Interop Labs, while the Axelar Network, its foundation, and the AXL token will remain autonomous and community-governed.
As the original developer of the Axelar Network, which facilitates cross-chain messaging and asset transfers, Interop Labs’ technology will be incorporated into Circle’s Arc blockchain and Cross-Chain Transfer Protocol (CCTP), as Circle stated.
Another contributor to Axelar, Common Prefix, will assume the development responsibilities of Interop Labs to ensure the open-source network’s continuity.
According to Circle, this acquisition is set to accelerate interoperability for assets issued on Arc, improve developer tools for multi-chain applications, and aid in the creation of Circle products. The specifics of the deal remain undisclosed.
Circle issues USDC (USDC), the second-largest stablecoin by market value, constituting approximately 25% of the $310 billion global stablecoin market, as per data from DefiLlama.
Earlier in January, Circle acquired Hashnote, the issuer of the tokenized money market fund US Yield Coin, enriching its stablecoin and infrastructure business with one of the largest yield-bearing real-world asset products.
Related: Paxos, Ripple, Circle and others secure US trust bank approvals
Acquisitions by Stablecoin Issuers in 2025
In 2025, stablecoin issuers have increasingly turned to acquisitions to grow their operations.
Paxos, in November, acquired institutional crypto wallet provider Fordefi for over $100 million, as reported by Fortune. The issuer of Pax Dollar (USDP) and PayPal’s USD (PYUSD) stated that this acquisition bolsters its custody and transaction infrastructure crucial for stablecoin issuance and on-chain payments.
Tether, the leading stablecoin issuer behind the USDT (USD) token, has leveraged its balance sheet to acquire minority stakes in traditional asset businesses.
In June, Tether spent about $89 million to acquire a roughly 32% stake in the Canada-listed gold royalty company Elemental Altus Royalties. In November, Tether Investments took a minority stake in Versamet Royalties, acquiring around 11.8 million common shares through a private agreement.
Tether is branching out beyond finance, having made a binding all-cash offer on December 12 to purchase Exor’s 65.4% controlling stake in Juventus Football Club, a bid later unanimously rejected by Exor’s board.
Magazine: Meet the on-chain crypto detectives fighting crime better than the cops
