Circle, the company behind USDC, the world’s second-largest stablecoin, has acquired key team members and proprietary technology from Interop Labs, the original developer of the Axelar Network. The move signals Circle’s growing focus on blockchain interoperability as stablecoin adoption accelerates globally.
Team Circle
As part of the acquisition, Interop Labs CEO and co-founder Sergey Gorbunov will join Circle, according to a company spokesperson. The deal is expected to close early next year, subject to customary conditions.
Circle described Interop Labs’ engineers and product specialists as leaders in their field, highlighting their experience building infrastructure designed to connect different blockchain networks. While financial terms were not disclosed, Circle emphasized that the acquisition is strategic rather than a full takeover of the Axelar ecosystem.
Focus on interoperability
Circle said the newly acquired technology and talent will support its goal of making digital assets issued on its Arc platform interoperable across multiple blockchains. Interoperability has become a central issue in the crypto industry, as developers and institutions look to move assets and data seamlessly between networks.
“Circle is committed to supporting interoperability with many onchain networks, just as we have with USDC, CCTP, and other blockchain infrastructure products from Circle,” said Nikhil Chandhok, Circle’s Chief Product and Technology Officer.
The announcement comes as competition intensifies among U.S.-based stablecoin issuers. On the same day, Ripple revealed plans to expand its own stablecoin-related infrastructure to Layer 2 blockchains, underscoring the industry-wide push to improve scalability and cross-chain functionality.
Clarifying Axelar’s future
Circle was careful to explain what the acquisition includes and what it does not. According to the company, the intellectual property being acquired is limited to Interop Labs’ proprietary technology. Open-source components related to the Axelar Network are not part of the deal.
Those open-source assets will transition to Common Prefix, a separate organization that will assume responsibility for ongoing development and support. Circle stressed that Axelar will continue to operate as an open-source interoperability protocol.
“Axelar continues as an open-source innovator, and we are working closely with the Common Prefix team to ensure continuity and long-term support,” Gorbunov said.
The Axelar Network was originally developed to enable secure cross-chain communication, allowing applications and assets to move across blockchains without relying on centralized intermediaries. It has been used by a range of decentralized applications seeking broader reach across ecosystems.
A shifting regulatory and market backdrop
The acquisition takes place as stablecoin usage in the United States appears poised for significant growth. Congress recently passed a legislative framework governing dollar-pegged digital tokens, a move widely seen as providing greater regulatory clarity for issuers and users alike.
Against this backdrop, infrastructure that supports interoperability is becoming increasingly important. As more blockchains, Layer 2 networks, and token standards emerge, the ability to connect them efficiently is viewed as a key requirement for mainstream adoption.
Earlier this year, the Axelar Foundation, the nonprofit organization that supports the Axelar Network’s development, disclosed that it sold $30 million worth of AXL tokens. That sale was intended to fund continued growth and ecosystem support.
Looking ahead
By bringing Interop Labs’ team and proprietary technology in-house, Circle is positioning itself to play a larger role in shaping how digital assets move across blockchains. While Axelar’s open-source work continues independently, the deal reflects a broader industry trend toward collaboration and consolidation around core infrastructure.
As stablecoins become more widely used in payments, finance, and onchain applications, interoperability is likely to remain a central focus. Circle’s latest move suggests it intends to be at the center of that evolution.
