Circle Acquires Interop Labs Talent as It Pushes Deeper Into Blockchain Interoperability
What Did Circle Acquire—and Why Now?
Circle has acquired Interop Labs team members and proprietary technology, bringing the initial developers behind the Axelar Network into the stablecoin issuer’s engineering ranks. CEO and co-founder Sergey Gorbunov will also join Circle, according to a spokesperson. The company said, “Interop Labs’s engineering and product teams represent some of the brightest minds in the industry, including CEO and Co-founder Sergey Gorbunov.”
Circle noted that the acquisition is tied to its effort to make digital assets issued on Arc interoperable across multiple blockchains. The company did not disclose financial terms but said the deal is expected to close ahead next year. The move expands its in-house capability to create uniform settlement pathways between chains—an area that has become increasingly significant as diverse networks.
Nikhil Chandhok, Circle’s Chief Product and Technology Officer, said, “Circle is committed to supporting interoperability with many onchain networks, just as we have with USDC, CCTP, and other products from Circle.”
Investor Takeaway
How Does This Impact Axelar and Interop Labs?
Circle clarified that its acquisition does not include Axelar’s open-source IP. A spokesperson said, “The IP we’re acquiring is specific to Interop Labs’s proprietary technology. It does not include the open source IP, which will be transitioned to Common Prefix.”
Common Prefix will take over the responsibilities previously handled by Interop Labs. Gorbunov said, “Axelar continues as an open-source innovator, and we are working closely with the Common Prefix team to ensure continuity and long-term support.”
Axelar’s core technology—built for cross-chain messaging, routing and asset movement—remains community-driven. Earlier this year, the reported tradeing $30 million worth of AXL tokens to support the network’s development and operational runway.
By separating acquired proprietary technology from Axelar’s open-source stack, both Circle and Axelar aim to avoid friction within developer ecosystems while still enabling collaboration where needed. Axelar maintains its own governance and roadmap independent of the Circle acquisition.
Why Interoperability Is Becoming a Priority for Stablecoin Issuers
The acquisition comes at a moment when issuers are racing to reinforce their infrastructure ahead of major U.S. regulatory changes. Congress recently approved a legislative framework that outlines disclosure, reserve and issuance rules for dollar-pegged tokens, paving the way for expanded use by .
Ripple, another , announced an expansion to Layer 2 networks on Monday in its own bid to improve cross-chain utility. Both companies are working to ensure that their without friction, especially as payment rails, trading venues and custody systems adopt multi-chain operations.
Stablecoins increasingly operate across a growing network of , Solana, Avalanche, Base, Arbitrum and Cosmos-aligned environments. For issuers, ensuring consistent minting, redemption and is turning into a core competitive factor.
Investor Takeaway
What Comes Next for Circle and Arc?
Circle’s plan is to make digital assets issued on Arc compatible across numerous blockchains through native transport rather than wrapped or bridged forms. The company’s past infrastructure work — including USDC’s multi-chain expansion and the (CCTP) — hints at how Arc may integrate into broader settlement flows.
The acquisition also reflects Circle’s intent to rely less on third-party cross-chain systems and build more of its tooling internally. Folding in Interop Labs engineers gives Circle direct access to a team that has written production-grade interoperability code for one of the largest networks designed for chain-to-chain messaging.
Circle said the acquisition will close ahead next year, later than which integration of personnel and technology will begin. Axelar, meanwhile, continues under the stewardship of Common Prefix, which now overviews the open-source components and development process.
As stablecoin networks spread across more chains and more jurisdictions, the divide between proprietary infrastructure and open-source connectivity is becoming more significant. Circle’s acquisition adds engineering firepower, while Axelar’s transition keeps the network’s governance outside any single corporate entity.
