Circle will work with Blackrock to develop methods to introduce USDC stablecoin applications to traditional financial markets
Circle is a global financial technology company that enables organizations of all sizes to use the potential of digital currencies and public blockchains for payments, trade, and financial applications all around the world. Tech company is the creator of USD Coin (USDC). One of the most rapidly expanding dollar digital currencies, which powers always-on internet-native commerce and payments.
Circle, the primary operator of the UDC Coin (USDC) and a prominent peer-to-peer (P2P) payments platform, has announced a $400 million fundraising round as well as a new cooperation with the American financial firm BlackRock. The USDC issuer has agreed to a fundraising round with BlackRock, the investment advice company Fidelity Management and Research, the London-based hedge fund Marshall Wace, and Fin Capital. The funding round is set to conclude in the second quarter of 2022.
In addition to its strategic organizational investment and role as the principal asset manager of USDC cash reserves, BlackRock has engaged into a larger strategic relationship with Circle. Which includes the exploration of capital market applications for USDC. The additional capital supports Circle’s continuing strategic expansion as worldwide demand for dollar digital currency and related financial services grows. With over $50 billion in circulation, USDC is one of the fastest growing dollar digital currencies.
Both firms will expand their current collaboration, in which Blackrock manages large asset reserves that support USDC, as part of their alliance.
Jeremy Allaire, Co-Founder and CEO of Circle, said: “Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. This funding round will drive the next evolution of Circle’s growth. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.”
Bitcoin, according to US Treasury Secretary Janet Yellen, is a speculative asset. But other digital assets might enable “faster and cheaper” payment options. In his recent executive order, President Joe Biden even urged for “rapid” CBDC development. Which gives comparable benefits to private sector stablecoins.
The fresh finance follows Circle’s amended SPAC acquisition, which lifted its enterprise value to $9 billion in February. In December of this year, the business intends to go public. BNY Mellon, America’s oldest bank, serves as Circle’s principal stablecoin custodian. Allaire, like Blackrock, thinks that the collaboration will help Circle develop additional connections with the conventional banking industry.
