Circle Raises $110 Million, Plans To Develop Dollar-Pegged Digital Currency

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Circle Raises $110 Million, Plans To Develop Dollar-Pegged Digital Currency

CENTRE, according to Circle, will be providing independent oversight of this new coin.

The Boston-based fintech company Circle, which has 7 million users, closed a funding round for $110 million led by bitcoin miner and designer of ASIC chips Bitmain, Bloomberg reports.

After Circle acquired popular cryptocurrency exchange Poloniex earlier this year, the company has been seen making some developmental changes with respect to the services on the platform.

The token of Circle are referred to as USDC (Circle USD Coin), and each token will be backed by the US dollars reserves, according to Circle.

Circle USDC joins other products the Goldman Sachs-backed company offers including Circle Invest, Circle Trade, Circle Pay and Poloniex.

A new project is offering bitcoin investors a refuge from market volatility., a US-based company for online payments, announced the launch of USD Coin, a dollar-pegged token on the Ethereum blockchain. Pitched as "a solution that enables customers to purchase and use USDC fiat tokens for payments and trading in the crypto ecosystem", the token will be backed by physical USA dollars held in reserve, making it what Circle refers to as an "open source fiat stablecoin".

The USD-C token will be based off of the Ethereum network, and Circle's subsidiary company, Centre will manage its protocol.

Circle says that USDC will be particularly useful for cryptocurrency traders to hedge quickly out of trading positions by converting their assets to USDC, which will be stable because of its backing by a fiat currency. He said the digital currency they are trying to create makes it more possible.

Circle also reported that Bitmain is one of the most important and forward-thinking companies in crypto, and has become a critical infrastructure provider for the entire crypto economy. 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.

CENTRE makes further use of the token standard, however, as node operators - whether they be an app operator, a bank or another financial institution - could issue their own ERC-20 tokens tied to a particular fiat currency to send between other parties on the CENTRE network. We are excited to be working directly with Bitmain on realizing our shared vision. In a recent blog post, the startup announced the existence of the cryptocurrency and provided details on what it's all about.

Circle is planning to create a CENTRE Foundation to spearhead development of the initiative, and the establishment of that nonprofit group is expected to happen in the coming months.

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