The purchase by Circle of nearly 1,000 blockchain patents from IBM could increase pressure on the stablecoin and blockchain infrastructure markets. This opinion was expressed by Fortune editor for finance and cryptocurrencies, Jeff John Roberts.
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.
— Circle (@circle) July 27, 2026
The acquisition makes Circle the leading U.S. blockchain patent holder and strengthens the foundation behind $USDC, CPN,... pic.twitter.com/lp6F6z55aw
Circle stated that the acquisition will support the development of $USDC, the Circle Payments Network, the Arc blockchain, and financial tools for AI agents.
According to Roberts, such a move by Circle is a theoretical lever for pressuring competitors. In his estimation, the company could potentially demand licensing payments, intimidate startups with litigation risks, or use the patents in negotiations with banks and payment companies.
He linked a separate risk to Circle and Tether's new competitor—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 is intended to return most of the reserve income to participants, minus a fee. This model potentially competes with Circle's business, for which revenue from USDC reserves remains one of the key income sources.
Roberts suggests that the large patent portfolio could become a negotiation tool for Circle amid the emergence of corporate and bank 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 infrastructure for "internet-native finance." The company itself acknowledges that it has become the largest holder of blockchain patents in the U.S. CoinDesk journalists found no public information on exactly how many patents are issued in the States, whether IBM retained any licensing rights, or if the firm intends to license or use the portfolio in disputes.
For the full year 2025, Circle's combined revenue and reserve income reached $2.7 billion. This indicator grew by 64% compared to the previous reporting period.
The net loss was $70 million, linked to expenses of $424 million for stock-based compensation following its IPO. However, operating profit remained positive—approximately $157 million.
Fiat on crypto: why corporations need their own stablecoins
Recall that in July, JPMorgan analysts suggested that Circle and Coinbase's new agreement with Hyperliquid could negatively impact $USDC and create risks for the companies.
