In August 2025, Informal Systems announced the strategic acquisition of its consensus engine Malachite by Circle. This event marks a significant step towards the development of the new Arc blockchain, intended for stablecoin finance.
Acquisition of Malachite by Circle
On August 12, 2025, Informal Systems announced that its consensus engine Malachite was acquired by Circle Internet Group. The aim of this deal is to support the launch of a new open Layer-1 blockchain Arc, which will focus on stablecoin finance. The testnet version of Arc is expected to debut later in 2025.
Technical Features of Malachite Engine
Malachite is a high-performance consensus engine that employs the Tendermint algorithm and is focused on correctness and efficiency. It was designed to meet the demands for a flexible, reusable foundation for decentralized systems, making it a reliable tool for building a secure financial infrastructure for stablecoin finance.
Informal Systems' Strategy and Future of Arc
The acquisition of Malachite aligns with Informal Systems' broader strategy of accelerating the growth of incubated projects. This strategy continues with ongoing initiatives such as Cycles, Hydro, and Quint. Some team members from Informal Systems will join Circle to further develop Arc.
The acquisition of Malachite by Circle represents an important milestone in the development of new technologies in the blockchain market, potentially impacting the efficiency of financial operations using stablecoins.
