Circle to Acquire Interop Labs Tech to Boost Arc Cross‑Chain Capabilities
Circle, issuer of USDC, will acquire Interop Labs’ team and proprietary technology—the original builders of the Axelar Network—to accelerate cross‑chain capabilities for its Arc Layer‑1 blockchain and the Cross‑Chain Transfer Protocol (CCTP). The deal, which excludes the Axelar Network, its foundation and the AXL token, is expected to close in early 2026 subject to customary conditions. The acquisition transfers Interop Labs’ staff and technology into Circle to strengthen native stablecoin transfers (including USDC), improve cross‑chain messaging and asset transfers, and speed development of developer tools and SDKs for multichain applications. Axelar’s open‑source codebase and community governance remain intact; Common Prefix will assume many day‑to‑day development responsibilities to preserve network continuity. Circle says the move is part of a broader strategy to make Arc an economic operating system for the internet and to scale interoperable on‑chain finance. The company also recently obtained a Money Services Provider licence from Abu Dhabi’s FSRA. Key keywords: Circle acquisition, Axelar, cross‑chain, CCTP, Arc blockchain, USDC.
Neutral
Impact on AXL price and related tokens is likely neutral. The acquisition transfers Interop Labs’ team and proprietary technology to Circle but explicitly excludes the Axelar Network, its foundation and the AXL token, which remain community‑governed and open‑source. That separation reduces immediate direct fundamental changes to AXL’s issuance, tokenomics or governance—key drivers of token price. Short term: market reaction may be muted or show temporary volatility as traders reassess developer resources and project continuity; some speculative flows could move into Circle/USDC‑linked narratives or into projects positioned to benefit from improved CCTP, but AXL itself lacks a direct change of control or on‑chain parameter updates. Medium to long term: the deal could benefit Axelar’s ecosystem continuity if Common Prefix successfully inherits development responsibilities, preserving network operation; separately, Circle’s improved cross‑chain tooling and faster CCTP/Arc integration could boost demand for cross‑chain utility and USDC flows, benefiting platforms facilitating stablecoin rails rather than AXL specifically. Overall, the announcement lowers operational risk for Circle’s multichain plans while maintaining Axelar’s independence—so price impact on AXL is limited and likely neutral, with potential indirect positive effects for broader cross‑chain infrastructure and stablecoin utility over time.