The germ-soma distinction is a defining feature of multicellular eukaryotes. Analogous to this, ciliates, a ubiquitous microbial eukaryote lineage, have morphologically and functionally distinct nuclei, but within single cells: the germline micronucleus (MIC) and somatic macronucleus (MAC). The origins and mechanisms of the MIC to MAC transformation, especially the extensive elimination of abundant internally eliminated sequences (IESs) and transposons during genome reorganization, are great biological mysteries. Blepharisma represents one of the two earliest diverging ciliate classes, and has unique, dual pathways of MAC development, making it ideal for investigating the functioning, origins and evolution of these processes. Here, we report the MAC genome assembly of Blepharisma stoltei strain ATCC 30299 (41 Mb), arranged as numerous alternative telomere-capped minichromosomes, tens to hundreds of kilobases long. The B. stoltei MAC genome encodes eight PiggyBac transposase homologs liberated from transposons. All are subject to purifying selection, but just one, the putative Blepharisma IES excisase, has a complete catalytic amino acid triad. Numerous genes encoding other domesticated transposases are present in B. stoltei, and often are comparably strongly upregulated in a similar timeframe to model ciliate genome reorganization homologs. Our phylogenetic investigations suggest the PiggyBac homologs may have been ancestral ciliate IES excisases. The B. stoltei MAC genome, together with the upcoming MIC genome, highlights the evolution and complex interplay between transposons, domesticated transposases, and genome reorganization in the context of germline-soma differentiation within single cells.