Circle Internet Financial Ltd raises $110 million in an investment round led by Bitmain Technologies Ltd for a token backed by U.S. dollar, reported Bloomberg on May 15.
The mobile payments and cryptocurrency trading agency expressed it has raised a total of $3 billion including a $480 million raised in 2016. Circle and Bitmain partnered to develop fiat-based digital tokens, backed by the U.S. dollar, which was first released by Circle in the summer.
It will be the latest stable coin on the market, which possessed all the benefits of cryptocurrencies, without its volatility. Circle’s coin will be back one-to-one to the dollar, which will be stored in auditable bank deposits.
Jeremy Allaire, Circle Chief Executive Officer mentioned in an interview,
“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”
Circle’s USD coins will be available in its cryptocurrency exchange Poloniex and the company is also planning to integrate USDC in its Circle Pay payment app and in Circle Trade.
USDC is a token based on the Ethereum network as it will be an ERC-20 token. The Centre Foundation will manage who is allowed to issue new fiat-backed tokens and will also be independent but controlled by Circle.
Allaire believes his token will enhance transparency and Circle’s revenue are going to increase in 2018.
“Circle was meaningfully profitable last year, and we continue to see high level of revenue growth,” he mentioned. “Revenue will be higher this year.”