Boston-based cryptocurrency start-up Circle, which earlier received a venture investment of $140 million from Goldman Sachs, raised $110 million in an investment round, led by the mining equipment manufacturer Bitmain.
The project also attracted investments from Breyer Capital, General Catalyst and Accel. Including these financing, Circle now values at nearly $3 billion, becoming a bitcoin “unicorn”. In addition, Circle announced that it will create a new cryptocurrency, pegged to the US dollar and allowing more efficient transactions. The coin will be called Circle USD Coin (USDC). The project for its creation will be launched this summer.
According to Circle, one of the main problems of bitcoin on the path of becoming a viable means of payment is its extremely high volatility. However, many companies are still interested in fast blockchain-enabled transactions, so a more stable coin, pegged to the US dollar, can be a real driver of the industry.
“It is difficult to use something like bitcoin if the volatility is so high,” Circle Chief Executive Officer Jeremy Allaire said at a media event. “Something like this makes it more possible.”
The new coin will be initially issued by the startup and run on a network managed by Centre, a wholly owned subsidiary of Circle. The company plans to make Centre independent as other firms join the network, Allaire said.
Circle also revealed that it plans to launch a number of coins pegged to various fiat currencies.
Bitmain, which led the investment round, will take an active part in their creation.
Earlier Circle acquired Poloniex, US-based cryptocurrency exchange.
Published at Wed, 16 May 2018 08:01:41 +0000