Circle Raises $110M to Create "USDC" Ethereum-Compatible Stablecoin

Fintech startup Circle has captured $110 million in venture capital during the largest venture capital round raised by a cryptocurrency or blockchain company to date.

Developed on the back of a $110M strategic investment in Circle, new Circle USDC token will be backed by reserves of US dollars and will focus heavily on regulatory compliance.

Circle appears to be developing the new USDC token in order to address the issues that are presented by existing USD-pegged tokens created by platforms such as Tether.

The new Circle USDC will focus on operating within the US money transmission laws and establishing a clear auditing process.

"Circle USDC addresses these problems by providing detailed financial and operational transparency, operating within the regulated framework of US money transmission laws, and reinforced by established banking partners and auditors."

According to Allaine, once fiat USD is transferred to their USDC ERC-20 equivalent on the Ethereum blockchain they can be moved "Within seconds." Allaine stated that Circle plans to eventually add both Euro and GBP tokens, but will likely focus on developing pegged Asian currencies as there is a lack of competition in the current cryptocurrency market.

The USDC token will be redeemed based on network rules defined by CENTRE, an Ethereum payments network developed by Circle that captured $20 Million in SAFT Sale in December 2017.

Mining giant Bitmain will be leading a $110 million investment in Circle alongside other investors that include IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, and Pantera.

In addition to investing in the funding round, Bitmain will also assist Circle in developing and launching other stablecoins linked to fiat currencies.

Goldman Sachs-backed Circle may provide the cryptocurrency market with a transparent alternative to USDT. With Tether left in a state of uncertainty subsequent to ongoing auditing issues, it's possible that USDC's streamlined availability through the Circle app-based peer-to-peer payment network could see it supplant USDT as leading stablecoin in the market.