Circle acquires IBM's blockchain patent portfolio to strengthen USDC infrastructure

Circle acquired IBM’s blockchain patent portfolio to strengthen its USDC and enterprise blockchain infrastructure, signaling a defensive IP strategy as patent competition in the blockchain sector intensifies. The deal gives Circle access to more than 500 blockchain-related patents IBM filed at its peak, covering areas like consensus mechanisms and supply chain applications. Financial terms were not disclosed. The move builds on Circle’s own patent work, including a December 2023 patent for parallel block processing designed to improve throughput. Circle also remains part of the LOT Network, which helps members defend against patent trolls. The article is strategically significant for crypto infrastructure because it suggests Circle is investing in legal and technical moats around USDC rather than focusing only on product expansion.