Thursday, 21 October 2021

Circle Announces USD Cryptocurrency


LONDON: The company said the latest investment raises its valuation to about $3 billion, from a reported $480 million in 2016.

Investors in previous funding rounds include such giants as Goldman Sachs, Baidu and investment bank China International Capital.

Also, Circle announced that it will issue fiat-based digital tokens. The tokens will act as stable coins, which have no volatility risk. One of these tokens, to be issued this summer, is USD Coin, or USDC, will be backed one-to-one by U.S. dollar. Dollars will be stored in auditable bank deposits and redeemable by verified buyers. USDC will be an ERC-20 token, based on the Ethereum network.

“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,” Circle CEO Jeremy Allaire said in an interview at an industry conference Monday. “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 plans to integrate USDC in its Circle Pay payment app, in Circle Trade, which provides market-making services, and offer it in a recently acquired for $400 million cryptocurrency exchange Poloniex.

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