Circle, the issuer of the USDC stablecoin, has announced the acquisition of the Malachite consensus engine from Informal Systems. This technology will serve as the foundation for the new Arc L1 blockchain, aimed at stablecoin-related financial infrastructure.
Acquisition of Malachite
Circle has announced the acquisition of the Malachite consensus engine, which will serve as the foundation for the new Arc L1 blockchain. This platform targets high-performance digital payments and will be the basis for the financial infrastructure related to stablecoins.
Strategic Shift and Talent Integration
Informal Systems CEO Ethan Buchman stated: "This acquisition is a strong validation of Malachite and of our incubation model. Circle’s adoption of Malachite provides a high-impact use case and a robust financial foundation for future development." Under the agreement, several Informal employees will join Circle to aid the development of Arc L1.
Plans and Prospects for Arc L1
The Arc L1 platform plans to start its testnet operations in 2025 while developing advanced consensus features and on-chain governance mechanisms. The partnership indicates a shift in the financial industry towards blockchain systems suited for financial use, which will help Circle achieve its goals for programmable money and international transactions.
The acquisition of Malachite is seen as a significant move in developing technologies that ensure the stability and reliability of stablecoins, which will contribute to the growth of the blockchain ecosystem.
