Circle's Patent Grab Sparks Stablecoin Market Concerns

Circle's acquisition of nearly 1,000 blockchain patents from IBM has sparked concerns about increased pressure on the stablecoin and blockchain infrastructure markets. According to Jeff John Roberts, Fortune's finance and cryptocurrency editor, this deal could give Circle a significant advantage over its competitors.

The patent portfolio covers various technologies, including banking and financial services, insurance, corporate infrastructure, supply chain verification, and secure cloud operations. This acquisition makes Circle the leading U.S. blockchain patent holder and strengthens the foundation behind USDC, CPN, and other Circle products.

Roberts suggests that this move could allow Circle to potentially demand licensing fees, intimidate startups with legal risks, or use the patents in negotiations with banks and payment companies. He also notes that a new competitor to Circle and Tether, Open USD, has emerged, which aims to return most of its reserve income to participants after deducting fees.

Circle's deal with IBM was announced on July 27, and the company states that the acquisition will support the development of USDC, the Circle Payments Network, the Arc blockchain, and financial tools for AI agents. The official revenue and reserve income of Circle reached $2.7 billion in 2025, marking a 64% increase compared to the previous reporting period.