Circle Raised $110M For 'USDC' US Dollar Pegged Cryptocurrency

Andrew Cummings
May 18, 2018

Circle's choice of using Ethereum's blockchain for their cryptocurrency is also particularly intriguing. Now, they have more resources to try and execute that vision.

Announced Tuesday, Circle has closed a $110 million Series E fundraising, a figure that effectively values the startup at almost $3 billion, according to figures from the company.

Goldman Sachs-backed, New York (Reuters) digital currency startup - Circle - has raised up to $110 million in an investment round that is led by Bitmain Technologies - a Chinese digital currency mining company. General Catalyst, Breyer Capital, and Accel are among the existing investors of Circle who joined the round.

Circle, which is valued at almost €3 bilion following the latest round, also announced a new virtual currency or so-called "stablecoin", known as Circle USDC, which is to run on ethereum, will be pegged to the US dollar.

All told, the funding will also help boost staffing at Circle, which today employs more than 200 employees globally in locations including Boston, San Francisco, Dublin, London, Paris, Madrid, Hong Kong, Beijing and Shenzhen.

Circle crypto firm brings enthusiasts an exciting announcement.

Circle is having a big year.

The currency will also be available as a primary trading pair on Poloniex, which the company acquired earlier in February.

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In an interview with Xconomy, Allaire made it clear that the company isn't interested in the shady side of the crypto space.

With business apparently humming, the company is making more moves. "Bitmain will help Centre introduce multiple fiat stablecoins in a variety of geo-currency zones", Circle says. "USDC provides a full reserve US dollar-backed stablecoin, and is based on the open source fiat stablecoin framework developed and governed by CENTRE, which will provide independent oversight of Circle's offering".

It's clear that Circle wants to build the infrastructure of the cryptocurrency industry.

The latest funding round will enable Circle to roll out a digital version of the US dollar called USD Coin (USDC), a cryptocurrency tied to the value of the US dollar.

It's hard to define Circle exactly, since the company does so much.

In a blogpost, Allaire and Neville explained: "A price-stable currency, such as a token pegged to the USA dollar, is critical for enabling mainstream adoption of blockchain technology for payments as well as for supporting maturation in financial contracts built on smart contract platforms, such as tokenised securities, loans and property".

The stable coin has recently become the white whale of the crypto world, with companies in droves attempting to make crypto less volatile by putting actual reserves behind it (hence "stable"), and make the conversion of crypto assets into fiat currency more efficient.

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