Goldman Sachs backs blockchain
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. Led by China-based mining juggernaut Bitmain, the funding round will be used to launch a new regulatory-complaint cryptocurrency pegged to the US dollar.
In a press release published on Tuesday 15th May, Circle announced the “pending availability of tokenized US dollar coins,” which will be supported by the CENTRE open source framework. 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.
According to Circle, the new token will be created in response to the need for a price-stable medium of exchange and store of value as trading volatile cryptocurrencies cause unwanted complexity, which leads to the creation of fragile settlement contracts.
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. Existing fiat-backed approaches, according to Circle, “have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies.”