Circle Expands Crosschain Infrastructure with Interop Labs Acquisition

Circle agrees to acquire Interop Labs, strengthening crosschain infrastructure and accelerating interoperability across Arc, CCTP, and global blockchain networks.

Circle is advancing its interoperability strategy after signing an agreement to acquire the Interop Labs team and proprietary technology. The move brings in a key player for the Axelar Network into Circle’s infrastructure business. Moreover, it is the reflection of the increase in the demand for seamless crosschain connectivity across digital asset markets. The transaction highlights Circle’s long-term vision for building an onchain finance that is scalable.

Circle Strengthens Interoperability Strategy Through Targeted Acquisition

Circle confirmed that the agreement includes the personnel and proprietary intellectual property of Interop Labs. The transaction is scheduled to close in early 2026 (subject to customary conditions). Importantly, neither is the Axelar Network, its foundation nor its AXL token. They will still function separately without the government’s intervention as community entities.

Interop Labs are the original creators of the Axelar Network: a decentralized interoperability protocol. Axelar supports secure crosschain messaging and asset transfers between blockchains. As such, the team has been instrumental in the establishment of one of the most advanced crosschain frameworks in the sector. Circle intends to incorporate this know-how into its fundamental infrastructure.

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According to Circle, the technology developed by Interop Labs will be included in the Arc blockchain as well as the Cross-Chain Transfer Protocol. Arc is a Layer-1 blockchain being built on Circle, which is designed to be enterprise grade settlement. Meanwhile, CCTP supports native stablecoin transfers on several blockchain networks. The integration is supposed to speed up the pace of development on both platforms.

                                                                     Source: Circle

Circle stressed that this transaction is strictly between the Interop Labs team and proprietary assets. Open source Axelar code will always be open source. Additionally, governance of the Axelar Network will remain by the community. This structure means that independence of the ecosystems is to be maintained while strategic collaboration is permitted.

To ensure continuity another Axelar contributor, Common Prefix will be taking many of the previous development responsibilities of Interop Labs. This transition is aimed at maintaining stability in the network and at the continued innovation. As a result, Axelar’s roadmap will go on without interruption. The community contributors will still be at the center of development.

Arc and CCTP Gain Momentum From In-House Expertise

Circle said the acquisition will help it achieve an objective of making digital assets on Arc interoperable across multiple blockchains faster. The company also plans to increase developer tools and software development kits. These improvements are to ease the use of multichain applications. The development of first-party applications is also expected to gain from the developments.

Sergey Gorbunov, CEO and co-founder of Interop Labs, said the work by the team is something they are proud of: Axelar. He added that by joining Circle, the technology enables greater cross-chain finance adoption. At the same time, Axelar will remain as an open source project. Working with Common Prefix will help with long-term continuity.

Circle’s Chief Product and Technology Officer, Nikhil Chandhok, stressed on seamless blockchain connectivity. He said that the integration of the Interop Labs team will speed Arc and CCTP roadmaps. The hope is to create a hub for the multichain internet finance. Circle already has interoperability with USDC and other infrastructure products.

Overall, the acquisition is part of Circle’s strategy to use Arc as an economic operating system for the internet. The company is aiming for fast settlement and indigenous uncooked liquidity. By combining proprietary technology with open networks, Circle is looking to scale interoperable finance. The move is a significant step towards a more connected on-chain economy.

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