Circle Makes Power Move: Acquires Axelar’s Interop Labs and Key Intellectual Property
Circle just cut a major deal that reshapes the cross-chain landscape—and it's all about control.
The Interoperability Power Grab
Forget just partnering. Circle went straight for the source code, snapping up Axelar's Interop Labs and the core IP that makes blockchains talk to each other. This isn't a collaboration; it's an acquisition. The move bypasses the slow grind of building tech from scratch and instantly vaults Circle's USDC ecosystem into the heart of multi-chain communication.
Why This Isn't Just Another Merger
This isn't about adding another service. It's about owning the pipes. By absorbing the team and technology behind a leading interoperability protocol, Circle isn't just participating in the multi-chain future—it's aiming to dictate its terms. The integration potential for USDC is massive, but so is the centralization risk. One entity now holds significant sway over how value moves between chains.
The Finance Angle: Follow the Money
Let's be cynical for a second. In traditional finance, you buy a competitor to shut it down or integrate it to hike fees. In crypto, you buy the bridge and toll booth—then you own the road. Circle's play here is a masterclass in vertical integration, securing both the stablecoin and the rails it travels on. It's a hedge against being just another app on someone else's chain.
The deal signals a brutal new phase. The battle isn't just for users anymore—it's for the foundational protocols that connect everything. Circle just bought a major piece of the plumbing. The rest of the industry is now forced to build around it, compete with it, or pray it stays benevolent. The age of friendly interoperability is over. The age of owned infrastructure has begun.
Interop Labs’ role in Axelar
According to the report, Circle said its goal is to build a future where digital assets are compliantly and easily transferred across more than 100 blockchain networks, requiring robust foundational infrastructure for frictionless settlement.
Axelar, which offers a framework for SAFE cross-chain messaging and token transfer, has been greatly influenced by Interop Labs. Because of this partnership, Interop Labs became a major force in the web3 interoperability market.
“We’re incredibly proud of what we’ve built with Axelar and excited to see our team and technology become a CORE part of Circle’s interoperability strategy,” said Sergey Gorbunov, CEO and co-founder of Interop Labs. “Together, we will lay the groundwork for the next era of crosschain finance. Axelar continues as an open-source innovator, and we are working closely with the Common Prefix team to ensure continuity and long-term support.”
Expected acceleration of Circle initiatives
As per the Axelar team, the integration of Interop Labs’ resources into Circle is designed to accelerate several key initiatives. It will boost the company’s Cross-Chain Transfer Protocol and its enterprise-grade L1 blockchain, Arc, which is being positioned as an “Economic OS for the internet.”
“Our goal is to make blockchain connectivity seamless, and bringing the Interop Labs team into Circle will accelerate the Arc and CCTP roadmaps toward building the hub for multichain internet finance,” said Nikhil Chandhok, Chief Product and Technology Officer at Circle. “Circle is committed to supporting interoperability with many onchain networks, just as we have with USDC, CCTP, Gateway, and other blockchain infrastructure products from Circle.”
Continuity of Axelar Network
The transaction is limited to the Interop Labs team and its proprietary intellectual property. The Axelar Network, the Axelar Foundation, and the AXL token will continue to operate independently under community governance. Common Prefix, another Axelar project contributor, will take over Interop Labs’ previous operations, and all open-source intellectual property will stay open source.
The acquisition marks a major investment by Circle to control and advance core interoperability technology. By bringing the creators of key Axelar components in-house, Circle is positioning itself to build out a seamless and scalable infrastructure for its products, particularly USDC and the Arc blockchain, while maintaining a commitment to broader ecosystem connectivity.
Also Read: Circle Launches Privacy Stablecoin USDCx on Aleo Blockchain
