Circle buys nearly 1,000 IBM blockchain patents

Circle has acquired nearly 1,000 IBM blockchain patents, including more than 680 patent families that cover blockchain technology, banking, payments, insurance, supply-chain verification and secure cloud operations. The company announced the transfer on July 27 and said the portfolio will support USDC, the Circle Payments Network, its Arc blockchain and other on-chain financial tools while creating options for commercial cooperation with IBM.

Circle did not disclose the purchase price or the specific patent numbers included in the transfer. The company described the acquisition as making it the largest holder of blockchain patents in the United States. Circle General Counsel Sarah Wilson called intellectual property important to expanding adoption of on-chain infrastructure.

Several patents in IBM’s public record describe methods for linking blockchain systems with conventional settlement and compliance systems. One active patent, titled ‘Blockchain settlement network’ (US11599858B2), covers moving digital value on a blockchain alongside an off-chain payment and monitoring the transaction until the external transfer settles; that patent remains active through 2041. Another active patent, ‘Blockchain compliance verification network’ (US11676117B2), focuses on capturing payment information and preserving compliance and settlement records on a blockchain, and addresses anti-money-laundering checks, customer identification and sanctions screening as well as ISO 20022 messaging. A pending application, ‘Real-time blockchain settlement network’ (US20220172198A1), describes operating a conventional payment network in parallel with a blockchain settlement layer and a token service provider that can trigger blockchain settlement while card payments are processed.

Analysts from Clear Street described the IBM relationship as offering strategic optionality, noting the portfolio could provide defensive leverage in cross-licensing or partnership negotiations and could be used in patent disputes if necessary. The brokerage also noted it does not expect meaningful licensing revenue in the near term and described any licensing income as upside rather than a core near-term driver. Clear Street highlighted potential commercial cooperation with IBM as a separate source of optionality that could expose Circle’s products to IBM’s bank and enterprise client base.

USDC’s institutional and payments use has grown as Circle expands bank links. Visa’s adjusted on-chain transaction data showed USDC accounted for roughly 70% of economically adjusted stablecoin transaction volume in the first half of 2026, compared with about 25% for Tether’s USDT. Adjusted volume reached a record $1.79 trillion in June, and cumulative adjusted volume for the first six months totaled about $8.82 trillion.

Circle has deepened integrations with major banks. Standard Chartered in early July began offering institutional clients integrated USDC minting and redemption without requiring direct Circle accounts. BNY Mellon expanded its support to make USDC the first stablecoin on its Digital Asset Custody platform and continues as the primary custodian of USDC reserves.

Competition for bank and payment distribution continues. Tether remains the largest stablecoin by circulating supply and global liquidity. A new consortium called Open Standard introduced Open USD (OUSD) in June with more than 140 participating companies, including several major payment and technology firms; Open USD’s model allows businesses to mint and redeem without fees or volume limits and returns most reserve revenue to companies that adopt and distribute the token. IBM participates in the Open USD consortium while also selling blockchain intellectual property to Circle.

Circle’s stock rose about 3% on the patent announcement to roughly $64. The company has not provided a timeline for monetizing the patents or detailed plans for how it will integrate the portfolio into its products.