Informal Systems announced on August 18, 2025, that its high-performance consensus engine, Malachite, has been acquired by Circle Internet Group, Inc. This acquisition is a strategic move to support the launch of Arc 1, a new open Layer-1 blockchain network purpose-built for stablecoin finance. Arc is expected to debut in testnet later this year.
Malachite is a Byzantine Fault Tolerant (BFT) consensus engine, developed through years of pioneering work in consensus and verifiability. Circle's integration of Malachite is intended to bring greater performance, reliability, and security to stablecoin-based payments. This deepens Circle's control over its core infrastructure and enhances its competitive advantage in the digital asset space.
The acquisition aligns with Circle's mission to deliver trustworthy, low-cost, and borderless financial infrastructure. Several Informal Systems team members will join Circle to drive Arc's development, ensuring continuity and expertise. This strategic investment in proprietary blockchain technology is expected to optimize for stablecoin-specific use cases, potentially leading to improved operational efficiency and cost advantages.
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