Home News Circle Secures $110 Mn Funding from Bitmain, Also Plans to Create Dollar...

Circle Secures $110 Mn Funding from Bitmain, Also Plans to Create Dollar Backed Cryptocurrency

Goldman Sachs backed institutional cryptocurrency exchange has just added a new investor to its list, the Chinese crypto mining firm Bitmain. The China-based crypto-mining giant, Bitmain Technologies has invested $110 million, valuing the exchange at $3 billion in the new investment round. The investment round also included other notable names like Accel and Blockchain Capital.

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. As per the announcement, the project will kickstart this summer. Bitmain will also be a partner in this project and will help in driving global interoperability that will benefit all stakeholders of the economy.

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Circle’s CEO Jeremy Allaire commented on the new cryptocurrency: “It is difficult to use something like bitcoin if the volatility is so high”. He added: “Something like this makes it more possible. It unlocks an incredible amount of power for the dollar. It’s basically a dollar that operates on the blockchain.”

The new cryptocurrency (USDC) will be based on the open fiat stable coin framework developed and governed by CENTRE. Initially announced late last year, CENTRE would allow both cryptocurrencies and fiat currencies to be transferred in a digital form, that will be based on Ethereum blockchain with its own ERC-20 token.

Circle in its blog posted:

“Bitmain is one of the most important and forward-thinking companies in crypto and has become a critical infrastructure provider for the entire crypto economy. Bitmain Co-founder and CEO Jihan Wu is well known for espousing a vision similar to ours regarding the creation and adoption of a new global economy powered by cryptographic assets, distributed contracts, and open source blockchain technology. We are excited to be working directly with Bitmain on realizing our shared vision.”

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