Crypto Startup Circle Raises $110 Million In Investment Round

Circle, a well-established startup in the business of cryptocurrency backed by Goldman Sachs has raised an amount of $110 million in an investment round led by Bitmain Technologies, the Chinese virtual coin mining giant. Circle, which is Boston based startup is said to create a new cryptocurrency stabilized to the price of the U.S. dollar, ensuring the businesses and consumers to transfer their worth more efficiently. Circle said each token, called the (USDC) Circle USD Coin, will be backed by the reserves of U.S. dollars. The effort towards this initiative will begin this summer.

Cryptocurrencies such as bitcoin have undergone a struggle to gain consideration as a reliable, alternative platform where safe transactions can be made due to the business extreme volatile nature. Although there's risk involved, many businesses are fascinated with the blockchain, an underlying technology which they think can help in making the transactions cheaper and real quick.

Circle holds this belief close to its heart that the value of a cryptocurrency which is pegged to be as high as a stable, traditional currency can help in driving adoption of systems based on the blockchain. At a media event, Jeremy Allaire, the Chief Executive Officer of Circle said: “Where the volatility is so high and the accuracy to predict things is unstable, using a payment method like bitcoin can get difficult. Something like USDC makes it more approachable.” Allaire added, “The issuing of the new coin will be initially done by the startup, which will run on a network managed by a wholly owned subsidiary of Circle, called Centre. The company strategizes to make Centre independent eventually when other companies join the network.”

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. Bitmain is a leading manufacturer of the hardware needed to mine and one of the world’s largest cryptocurrency mining companies. General Catalyst, Breyer Capital, and Accel are among the existing investors of Circle who joined the round. Circle currently is operating an app-based associated network of payment with the use of blockchain and is acting as one of the leading players in the bitcoin trading for over the counter market. It recently got hold on cryptocurrency exchange is known as Poloniex. The new cryptocurrency is all set to give a ferocious competition to the rival traditional currency backed virtual coins.

Source: Reuters

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  1. Vital Dermax