Circle’s acquisition of nearly 1,000 blockchain patents from IBM could increase pressure on the stablecoin and blockchain infrastructure markets, according to Jeff John Roberts, Fortune’s finance and cryptocurrency editor. He expressed this view in a recent article.
Circle announced the deal on July 27. The portfolio covers blockchain technologies, banking and financial services, insurance, corporate infrastructure, supply chain verification, and secure cloud operations.
Circle has acquired fundamental assets from the @IBM blockchain patent portfolio, including 680+ patent families and nearly 1,000 issued patents worldwide.
The acquisition makes Circle the leading U.S. blockchain patent holder and strengthens the foundation behind USDC, CPN,… pic.twitter.com/lp6F6z55aw
— Circle (@circle) July 27, 2026
Circle stated that the acquisition will support the development of USDC, the Circle Payments Network, the Arc blockchain, and financial tools for AI agents.
Roberts believes this move gives Circle a theoretical leverage over competitors. He suggests the company could potentially demand licensing fees, intimidate startups with legal risks, or use the patents in negotiations with banks and payment companies.
He also highlighted a separate risk from a new competitor to Circle and Tether—Open USD. In June, Open Standard announced the launch of the OUSD stablecoin with support from Stripe, Visa, BlackRock, and over 140 companies.
The project aims to return most of the reserve income to participants after deducting fees. This model potentially competes with Circle’s business, where reserve income from USDC remains a key revenue source.
Roberts suggests that a large patent portfolio could serve as a negotiating tool for Circle amid the emergence of corporate and banking stablecoin initiatives. However, he provides no evidence that the company plans to use the patents for lawsuits or to pressure open-source developers.
Officially, Circle describes the deal as strengthening the infrastructure for “internet-native finance.” The company acknowledges becoming the largest blockchain patent holder in the U.S. Journalists from CoinDesk found no public information on how many patents were issued in the U.S., whether IBM retained licensing rights, or if the firm intends to license or use the portfolio in disputes.
In 2025, Circle’s total revenue and reserve income reached $2.7 billion, marking a 64% increase compared to the previous reporting period.
The net loss was $70 million, attributed to $424 million in stock compensation expenses following the IPO. However, operating profit remained positive at approximately $157 million.
Earlier, in July, JPMorgan analysts suggested that the new agreement between Circle and Coinbase with Hyperliquid could negatively impact USDC and pose risks for the companies.
