Circle Raises $400m, Partners With BlackRock To Develop USDC Standard

Circle Internet Financial, the global internet finance firm behind the USD Coin (USDC) stablecoin standard, has recently begun a $400 million investment round with support from BlackRock, Inc., Fidelity Management and Research, Marshall Wace LLP, and Fin Capital.

With the latest investment round, Circle is looking to explore new inroads in the traditional financial sphere, where USDC, its stablecoin, may be utilized to integrate crypto with traditional financial instruments. While the invested figure is not yet final, the funding round will continue up to Q2 of 2022, with Circle working towards a SPAC (special purpose acquisition company) merger, which would take the firm's valuation to roughly $9 million (USD).

BlackRock, in partnership with Circle, has resolved to servee as the primary asset manager for USDC cash reserves, with a broader partnership that would explore market applications of the USDC stablecoin, as well as pooling for technical expertise and industry knowledge.

“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.” shares Circle co-founder and CEO Jeremy Allaire.

The crypto industry has reached a key juncture, where traditional finance is starting to take notice of crypto assets and the potential for blockchain technology. The latest investment round by Circle only cements this trend, with crypto assets slowly but surely gaining mainstream adoption.

Circle is currently pursuing an application to operate as a bank in the U.S. The new funding is set to bolster Circle's presence in both the crypto space and the traditional financial space, where access to banking products will be of great importance as the global economy shifts to digital currencies.

Circle's USDC is the second-largest dollar-backed stablecoin by market capitalization and is available on major crypto exchanges such as Coinbase, Binance, and Huobi Global. The USDC standard is an open source initiative that Circle launched in partnership with several crypto firms in September 2018, with its protocol built on top of the Ethereum blockchain as an ERC-20 token.

Circle's USDC stablecoin currently has over $50.2 billion worth of circulation, with roughly $3.4 billion in average daily trading volume. Circle's previous funding round went up to $440 million, closed in May 2021.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.