Tuesday, 17 July, 2018

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

Circle Raises $110Mn With Plans to Launch USD-Backed Coin Circle Raises $110Mn With Plans to Launch USD-Backed Coin by Jamie Redman
Nellie Chapman | 17 May, 2018, 14:09

Again, this pretty much goes against the whole point of cryptocurrencies, which were originally created to present a transparent financial market free of regulation from federal government and the influence of big banks. Now, they have more resources to try and execute that vision. The Boston based company now plans to introduce a Dollars backed cryptocurrency to bring all of the advantages of blockchain to traditional forms of payment.

Circle also announced that it raised $100 million in their Series E round which was led by Bitmain.

In the Circle financing, Bitmain was joined by existing investors such as IDG Capital, Accel, Breyer Capital and Pantera, as well as two new investors, Blockchain Capital and Tusk Ventures.

Along with this new investment round, Circle has also announced that it will be launching a new stable cryptocurrency, Circle USD (USDC) which would be pegged to the US Dollar enabling businesses and consumers to transfer values more efficiently. Yes, technically this new digital coin made by Circle and Tether essentially do the same thing, but what makes them stand apart is their platforms. This means that the mobile payments company, which also offers cryptocurrency trading facilities, is now valued at somewhere in the region of $3bn - with previous backers including Goldman Sachs and Baidu.

Circle is having a big year.

Bringing Poloniex into the fold put Circle on track to generate more than $1 billion in annual revenue, Fortune reported.

"It is hard to use something like bitcoin if the volatility is so high", Circle Chief Executive Officer Jeremy Allaire said at a media event.

With business apparently humming, the company is making more moves.

Companies and even countries have announced intentions to create coins backed by precious metals like gold or silver or other commodities like oil or diamonds.

The USD Coin is being developed by an organisation known as the CENTRE, which will provide independent oversight of Circle's offering.

Though it's unclear who will make the shift, the startup said that "several key Circle employees" are expected to form the foundation's early leadership team. "As I like to say, go in through the front door-don't go hide in the shadows", Allaire told Xconomy recently.

Circle has ambitions to roll out a crypto version of the United States dollar.

Circle is a company that has seriously focused on the growth and expansion of its services in the recent months.

"A price-stable currency, such as a token pegged to the US 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 tokenized securities, loans, and property".