Bitmain is investing $110M in the development of the CENTRE platform and its USDC project as well as series E strategic investment in Circle. Its other investors include Goldman Sachs and Baidu. The valuation on the round was not officially revealed, but Coinbase reported the new round was raised on a $3 billion valuation, making Circle the second blockchain-focused startup to obtain "unicorn" status after Coinbase Inc.
The USD-C token will be based off of the Ethereum network, and Circle's subsidiary company, Centre will manage its protocol. The new currency is basically a digital version of the dollar that you'll be able to purchase by trading in, you know, real money. Extreme price fluctuations in crypto asset values often makes them risky tools for payments and storing value. The goal is to eventually have lots of stable tokens, all backed by different fiat currencies, but the first will be Circle USD Coin (USDC), a coin backed one-to-one by the USA dollar with the fiat to be stored in an auditable bank account and redeemable by verified buyers.
CENTRE is a Circle initiative to create a common framework to connect all electronic wallets.
The use of tokenized US Dollars permits the creation of less volatile trading pairs, an option that many users will appreciate as it would imply less exposure to the risk of a sudden change in the value of a defined crypto.More news: Merkel Says Germany Remains Committed To Iran Nuclear Accord
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 made a decision to have its own stablecoin.
The idea is for exchanges to redeem USDC directly for US 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.
Itself based on the Ethereum ERC-20 token standard, USDC will be available to anyone who has completed a KYC process.
Fiat-backed crypto assets may be a widening trend for the traditional financial sector as well, with Japanese banking conglomerate MUFG also announcing this week it would create a token pegged 1:1 to the Japanese yen (JPY).More news: CBS adds revival of 'Murphy Brown' and new take on 'Magnum PI'
Circle crypto firm brings enthusiasts an exciting announcement.
More recently, the company launched Circle Invest, a really simple mobile app for the USA market.
The company is led by founder and CEO Jeremy Allaire, a long-time Silicon Valley identity. Currently, Circle has 7 million users worldwide and is working rapidly to expand its reach to every major country around the world. Several other companies have offered similar stablecoins-most notably Tether(USDT), which is associated with one of the largest exchanges, Bitfinex. Let's hear your thoughts in the comments.More news: Amazon Alexa developers get eight new voices