Circle acquires Interop Labs team and technology to boost cross-chain interoperability

Circle, the issuer of the USDC stablecoin, has acquired the team and proprietary technology of Interop Labs, the original developer behind the Axelar Network. As part of the deal, Interop Labs CEO and co-founder Sergey Gorbunov will join Circle, with the acquisition expected to close early next year.

Circle said the move is aimed at enhancing interoperability for digital assets issued on Arc, its blockchain infrastructure platform. The company praised Interop Labs’ engineering and product teams, highlighting their expertise as a key factor behind the acquisition. Circle’s leadership reiterated its broader commitment to cross-chain interoperability, building on existing products such as USDC, CCTP, and other on-chain infrastructure solutions.

The company clarified that the acquisition only covers Interop Labs’ proprietary intellectual property and does not include Axelar’s open-source codebase. That open-source development will be transitioned to Common Prefix, which will take over from Interop Labs. According to Gorbunov, Axelar will continue to operate as an open-source project, with efforts underway to ensure continuity and long-term support. The move comes as U.S.-based stablecoin issuers increasingly focus on interoperability, amid expectations that new legislation will significantly accelerate stablecoin adoption.