Circle acquires nearly 1,000 IBM blockchain patents amid doubts over value

Circle disclosed that it has bought almost 1,000 blockchain patents from IBM, framing the deal as a boost to the backbone of global, internet-native finance. The announcement nudged Circle’s stock upward, but observers point out IBM’s own blockchain efforts have largely flopped and its broader business has lagged behind cloud and AI trends. IBM’s reputation for amassing patents stems more from filing prowess than from translating those filings into market-changing products.

Circle, which built its reputation on the USDC stablecoin, has offered no concrete plan for deploying the acquired intellectual property. Analysts suggest the patents could be leveraged to extract royalties, intimidate rivals, or serve as leverage in negotiations with banks and card networks, offering little benefit to the wider crypto ecosystem.