Circle Raises Another Round of Funding

Jeremy Allaire cofounder and CEO of cryptocurrency startup Circle

Jeremy Allaire cofounder and CEO of cryptocurrency startup Circle

By providing a cryptocurrency backed by fiat money, Circle hopes USDC will provide a life raft from the crashing waves and popping bubbles of a still-stormy market. Now, they have more resources to try and execute that vision.

In addition to the digital version of the USA dollar, Circle announced a $110 million funding round led by cryptocurrency mining company Bitman, bringing its capitalisation to almost $3 billion. Setting funding records Recently the company closed a funding round for $110 million that was led by Bitmain, a Bitcoin mining company. According to the company, the invention of blockchain-based computing and cryptographic assets has brought in a new era of the 'open internet.' However, it adds that 'a price-stable medium of exchange and store of value is missing, ' which is needed for 'global financial interoperability to function reliably and consistently'. Circle has raised a total of $250 million in venture capital since Sean Neville and Jeremy Allaire (pictured above) founded the company in 2013. Newcomer investors Blockchain Capital and Tusk Ventures have also contributed.

This week's moves further reflect Circle's on-again, off-again enthusiasm for cryptocurrencies - or at least, their overt endorsement of them in public.

Goldman Sachs-backed cryptocurrency exchange Circle now has a new investor to its name, the Chinese crypto mining giant Bitmain.

In February, it emerged that Circle had confirmed the purchase of US-based Poloniex in a deal estimated at $400m that would enable Circle to directly compete with one of the biggest cryptocurrency exchanges in the world, Coinbase.

"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.


There are some other cryptocurrencies that emerged in the market with an aim to address the price volatility, such as Tether token (USDT) which is linked to United States dollar reserves and tied to the price of the U.S. dollar. "USDC provides a full reserve USA 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".

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.

The post Goldman Sachs-Backed Circle Announces Cryptocurrency Version of US Dollar appeared first on NewsBTC.

CENTRE is a wholly owned subsidiary of Circle, although a white paper on CENTRE's website describes plans to separate from the parent company and operate independently. "Something like this makes it more possible".

Jeff Engel is a senior editor at Xconomy.

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