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 investment round also included other notable names like Accel and Blockchain Capital.
Circle, which is valued at almost €3 bilion following the latest round, also announced a new virtual currency or so-called "stablecoin", known as Circle USDC, which is to run on ethereum, will be pegged to the US dollar. Bitmain Co-founder and CEO Jihan Wu is well known for espousing a vision similar to ours regarding the creation and adoption of a new global economy powered by cryptographic assets, distributed contracts, and open source blockchain technology. "A price-stable currency, such as a token pegged to the U.S. dollar, is critical for enabling mainstream adoption of blockchain technology for payments as well as for supporting maturation in financial contracts built on smart contract platforms, such as tokenized securities, loans, and property".
It's hard to define Circle exactly, since the company does so much. But with USD Coin, Circle says it aims to address some of the weaknesses of existing fiat-backed cryptocurrencies by "providing detailed financial and operational transparency, operating within the regulated framework of US money transmission laws", and working with banks and auditors. The tokens will act as stable coins, which have no volatility risk.
Earlier, Poloniex was using the USDT token by Tether, however, after a lot of questions being raised about the suspicious operations of Tether in the recent past, Circle chose to have its own stablecoin.
We can see the involvement of Centre with Bitmain, through conjunctive investment to assist in launching coins that are linked to other sanctioned currencies, or tenders obtained legally.
Circle will be the first issuing member of the CENTRE network.
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"Transacting in currencies which fluctuate with extreme volatility creates complexity and fragile settlement contracts, especially when compared to transacting in "tokenized fiat money" or fiat-pegged crypto assets", the blog adds.
The idea is for exchanges to redeem USDC directly for USA dollars (although they may charge a fee to do so), and for other creators to issue tokens based on the world's other fiat currencies.
Circle crypto firm brings enthusiasts an exciting announcement. The company launched in 2013 as a consumer-friendly payments network that made it simple for users to buy and sell bitcoin, though "pivoted" away from its image as an exchange platform in 2016.
Including the new funding, Circle has raised $246 million to date.
With business apparently humming, the company is making more moves. Let us know of your thoughts in the comments section below.