Boston-based Circle Internet Financial Ltd., a digital currency products developer, has closed a $110 mln fundraising round led by mining hardware manufacturer Bitmain, Bloomberg reports May 15. The two companies are now partners in a project to create a token which is backed by US dollars.
The investment lifts Circle’s valuation to nearly $3 bln, which is more than six times what it was in 2016. The partnership between Bitmain and Circle has also resulted in plans to develop a fiat-backed token or “stable coin”, which aims to address the unstable nature of some cryptocurrencies. The project is called Circle USD Coin, or USDC, and will reportedly be released by Circle in the summer.
USDC will be an ERC-20 token based on the Ethereum network. It will be backed one-to-one with the dollar and is lauded by supporters to carry many of the benefits of cryptocurrencies, without the risk of volatility. Circle CEO Jeremy Allaire said in an interview at an industry conference Monday, that the token will also provide greater transparency. He added:
“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.”