Cryptocurrency Firm Circle Raises $110 Million to Launch Dollar-Backed Token

  • Cryptocurrency Firm Circle Raises $110 Million to Launch Dollar-Backed Token

Cryptocurrency Firm Circle Raises $110 Million to Launch Dollar-Backed Token

Another important announcement was the commercial alliance with Bitmain, the largest ASIC manufacturer in the market and responsible for one of the largest mining pools in the world. Other investors in this financing round include previous Circle backers IDG Capital, Breyer Capital, General Catalyst Partners, Accel, Digital Currency Group, and Pantera Capital, as well as new Circle investors Blockchain Capital and Tusk Ventures, Circle said in a blog post.

The USD-C token will be based off of the Ethereum network, and Circle's subsidiary company, Centre will manage its protocol. For a really long time, the company pitched itself as a social payment company, a Venmo and Square Cash competitor. The firm reported that it was handling over $2 Billion worth OTC trades every month.

More recently, the company launched Circle Invest, a really simple mobile app for the US market. So your extensive rig won't help you get more USD Coin - looks like you'll just have to buy it. You should not treat any information on as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. And though it has seemed increasingly likely that regulation and corporate influence will play a bigger role in the space, some, including Silicon Valley investor Sam Altman, staunchly believe that any USD-based cryptocurrency must remain under distributed control.

Circle also announced that Bitmain would support the Centre project and the resale of the new token, USD-C. This new USDC will make digital tokens that much more appealing to the masses. By backing a cryptocurrency with tangible assets developers hope to create stability and allow users to spend money using blockchain technology without the worries of price volatility. Jumping on the Ethereum bandwagon Following the close of the round, Circle said it would create a new cryptocurrency, that uses the Ethereum blockchain, with it's value "pegged to the price of the USA dollar", according to Reuters. USD Coin notably 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.

We can see the involvement of Centre with Bitmain, through conjunctive investment to assist in launching coins that are linked to other sanctioned currencies, or tenders obtained legally. Let us know of your thoughts in the comments section below.

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