Boston-based Circle announced Tuesday it raised $110 million in a Series E equity funding round, and it plans to launch a new cryptocurrency pegged to the price of the USA dollar and backed by reserves of the fiat currency.
Circle announced this new partnership on its Twitter handle.
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. Circle has raised a total of $250 million in venture capital since Sean Neville and Jeremy Allaire (pictured above) founded the company in 2013. We are excited to be working directly with Bitmain on realizing our shared vision.
The framework for the new virtual currency is being developed by an organization known as CENTRE, which will provide independent oversight of Circle's offering.
Circle further noted that "Bitmain will help CENTRE introduce multiple fiat stablecoins in a variety of geo-currency zones".
The deal comes just a few months after Circle purchased Poloniex, a Boston-based cryptocurrency exchange in a deal valued at about $400 million (€338 million). Circle has now introduced a new stablecoin called USD Coin whose value at any given point in time will be fixed and equal to one U.S Dollar. This way users will be able to freeze their money with a currency that would not be theoretically subject to inflation or speculation.
The use of tokenized US Dollars permits the creation of less volatile trading pairs, an option that many users will appreciate as it would imply less exposure to the risk of a sudden change in the value of a defined crypto.
Earlier, Poloniex was using the USDT token by Tether, however, after a lot of questions being raised about the suspicious operations of Tether in the recent past, Circle made a decision to have its own stablecoin. The new cryptocurrency, dubbed USD Coin, is a so-called "stablecoin" created to avoid the volatile price swings some cryptocurrencies have suffered from.
Further, Circle claims they would be open to detailed and transparent financial & operational audits since they operate within the regulated framework of United States money transmission laws. USDC will be ERC-20 tokens minted, issued, and redeemed based on network rules defined by CENTRE. In conjunction with the investment of Bitmain technologies, it will be involved with the subsidiary of Circle (Centre) and help to launch digital currencies linked to other fiat currencies or legal tenders.
- Fuel prices hike: Rahul Gandhi accuses Narendra Modi of fooling people
- Google Chrome team rolls back the update that muted many web games
- Premier League transfer window will open a month earlier than usual
- US Dollar Surges, Boosted By Sales Data And Rising Bond Yields
- Sei Investments Company Increased Apple INC (AAPL) Stake as Shares Declined
- According to Gearbox Software Borderlands 3 Won't Be at E3 2018
- MSCI unveils 234 Chinese stocks for key index
- Hertz Global Holdings, Inc. (NYSE:HTZ) Buckles Under The Trend Lines
- 'The Voice' Recap: Find Out The Final 4 Artists America Saved
- SC rejects Karnataka's plea to adjourn hearing in Cauvery water sharing