Circle Raises $400M, Eyes Capital Market Applications For USDC

Circle Raises $400M, Eyes Capital Market Applications For USDC

Key Takeaways

Circle, the company behind the second-largest stablecoin on the market, USDC, has raised a $400 million funding round.
Investors in the latest raise include the world’s largest asset manager BlackRock, and fourth-largest Fidelity.
The firm is also reportedly exploring capital market applications for its USDC stablecoin through a broader strategic partnership with BlackRock.

Share this article

Circle, the U.S.-based company behind the second-largest centralized stablecoin on the market, has raised $400 in a funding round including BlackRock, Fidelity, Marshall Wace, and Fin Capital.

USDC Issuer Circle Raises $400M, Adds BlackRock as Strategic Advisor

Last valued at $9 billion, Circle has landed an additional $400 million in funding.

As per a Tuesday press release, the stablecoin issuer has entered into a funding agreement for a $400 million raise with a group that includes the world’s largest asset manager BlackRock, with over $10 trillion in assets under management, fourth-largest Fidelity with over $4.2 trillion, and smaller investment firms Marshall Wace LLP and Fin Capital.

Commenting on the raise, Circle co-founder and CEO Jeremy Allaire said:

“This funding round will drive the next evolution of Circle’s growth… digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change,” he added.

Besides raising the additional capital, Circle has entered into a broader strategic partnership with BlackRock that should help the firm explore capital market applications for USDC. If the company succeeds, the integration of USDC with traditional capital markets would be a first-in-kind as, so far, stablecoins have stayed exclusively crypto-native.

Today’s $400 million raise comes less than a year after Circle raised $440 million in a funding round, including Fidelity, Digital Currency Group, FTX, and others. Earlier this year, in February, the firm also announced that it planned to go public at a $9 billion valuation through a merger with a special purpose acquisition company (SPAC) called Concord Acquisition Corp. The merge is scheduled to happen between December 2022 and January 2023, after which the company will be listed on the New York Stock exchange under the ticker CRCL.

The USDC stablecoin issued by Circle is currently the second-largest stablecoin in the industry with a market capitalization of around $50.7 billion, trailing behind the older and still largest stablecoin, Tether, which boasts a market cap of roughly $82 billion.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Get up to $600 in AVAX or LUNA

With our goal of bringing the next 100 million people to crypto, Celsius is always looking to provide the best experiences and opportunities for our community. This includes looking for…

USDC Stablecoin Issuer Circle Is Now Valued at $9B

Circle, the issuer of USDC, has shared new details regarding its transition to becoming a publicly trading firm. Its valuation is now $9 billion. Circle’s Valuation Doubles Ahead of SPAC…

Avalanche Integrates Circle’s USDC to Boost DeFi Adoption

Circle is launching a native version of its dollar-pegged token USDC on Avalanche. USDC Heads to Avalanche Avalanche is adding native USDC support. Circle announced today that it would be…

Stablecoin Giant Circle Plans to Become Federal Bank

In Circle’s latest company update, CEO Jeremy Allaire detailed the stablecoin giant’s plan to become a National Digital Currency Bank under federal oversight. Circle Aims for Federal Bank Status The company…

BIS Says Stablecoins Need Traditional Payments Rules

A new report from the Bank for International Settlements suggests that stablecoins should be subject to the same rules as traditional payment systems. IOSCO-BIS Prescribe Stablecoin Rules A new report…

Source link

Leave a Reply

Your email address will not be published.

© Copyright 2022
You have not selected any currency to display