The Boston-based company provides cryptocurrency trading and investment services. To allay these concerns, Circle promised "detailed financial and operational transparency" and adherence to U.S. currency laws.
Rather, Allaire suggested that bolstering the exchange and fiat cryptocurrency ecosystems globally only strengthens products like its original mobile money application, enabling that product to work more effectively at scale in accordance with its original vision. Along with the announcement of its Series E, Circle unveiled Tuesday an affiliate project called CENTRE, which is developing a token called USD Coin, or USDC: "a full reserve U.S. dollar-backed stablecoin", according to the statement.
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. The coins are to be stored in auditable bank deposits and redeemable by verified buyers.
USDC is an ERC20 token based on the Ethereum network. The Boston based company now plans to introduce a United States dollars backed cryptocurrency to bring all of the advantages of blockchain to traditional forms of payment.
Its solution proposes fiat-backed digital tokens, the first of which will be "USD Coin" (or USDC). Currently, Circle has 7 million users worldwide and is working rapidly to expand its reach to every major country around the world. The new token stands to play a more significant role and enjoy enormous success should the company find a way to monetize it.
The cryptocurrency, named USDC or USD Coin, will be an ERC20 token built on top of the Ethereum blockchain.
"The development of USDC, the evolution of CENTRE, and this new strategic financing further grow our strength as we push toward our lofty goals". However, the company is yet to reveal the fees, if any, that people will have to part ways with to use the coin. Circle uses are then able to redeem their coins for the stable value denominated in fiat.
Circle is "one of the most well-funded startups", according to reports on Tuesday. In 2016, Bitmain also invested in the decentralized autonomous organization (DAO) Wings, which recently launched its beta testnet. It has already announced plans to expand from 230 staff to 400 before the end of the year, with the opening of new offices in New York, London, Paris, Madrid, and Beijing. Essentially, USD will be a cryptocurrency that boasts the freedom of a cryptocurrency, with the safety and balance of the US FIAT currency.
Since the start of the 2017 crypto asset boom and re-emergence of digital money in the mainstream mindset, Circle began making new plays in the space.