Published: Fri, May 18, 2018
Economy | By

Goldman-Sachs Backed Crypto Startup to launch USD Backed Coin

Goldman-Sachs Backed Crypto Startup to launch USD Backed Coin

On Tuesday, the Boston-based crypto exchange and wallet company, Circle, announced that they closed a $110m Series E funding round that values the startup at almost $3B. Existing investors in Circle Internet Financials include IDG Capital, Breyer Capital, General Catalyst as well as Digital Currency Group. The company is rumored to be worth about $3 billion, reports said, adding that work on its new crypto is expected to begin this summer.

With the funding, the company is also revealing an ambitious plan to bolster its products and services by launching a "US dollar coin", or a blockchain native asset that would be both regulated and backed by real government currency, through its affiliate. Bitmain will also help on the introduction of new stable coins supported by other fiat currencies while also making them interoperable around the world. "It is hard to use something like bitcoin if the volatility is so high", Circle's founder and CEO Jeremy Allaire stated.

More than a technical novelty, Allaire positioned the stablecoin project as essential to Circle's maturation and continued expansion, painting it as integral for its mobile payments application, its over-the-counter (OTC) trading business and its exchange service.

The ultimate goal for circle is to use this technology elsewhere, with the company now reportedly looking towards Europe and the Euro to analyse the possibilities of producing a FIAT/Crypto hybrid across a number of countries on the continent.

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 Announces USDC and Raises $110 Mn in Series E Funding appeared first on BTCMANAGER. Circle's New "USD Coin" - A Regulator-Friendly Tether?

Though Circle didn't mention the Tether (USDT) token by name, USDC appears to be a more regulator-friendly version of the USD-pegged asset popular on big exchanges like Bitfinex.

Bitmain will also join CENTRE's efforts to introduce multiple fiat-backed stablecoins and provide financial interoperability around the world.

Given Goldman Sachs' recent investments in the crypto realm and announcement that the firm would trade Bitcoin on behalf of investors, it makes sense that the financial giant is trying to control the market as best it can.

"Circle can be an issuer of USA dollar coin, Square (a payments company) could be an issuer".

Itself based on the Ethereum ERC-20 token standard, USDC will be available to anyone who has completed a KYC process.

"To realize the vision for ubiquitous payments, we need there to be currencies that can be stored, settled and used", Allaire continued.

Like this: