Dublin-based fintech firm Circle raises $110m in funding round

Lloyd Doyle
May 16, 2018

Boston-based Circle announced Tuesday it raised $110 million in a Series E equity funding round, and it plans to launch a new cryptocurrency pegged to the price of the us dollar and backed by reserves of the fiat currency. Circle, which is Boston based startup is said to create a new cryptocurrency stabilized to the price of the US dollar, ensuring the businesses and consumers to transfer their worth more efficiently.

In addition to the digital version of the US dollar, Circle announced a $110 million funding round led by cryptocurrency mining company Bitman, bringing its capitalisation to almost $3 billion.

Goldman Sachs-backed payment company Circle made the headlines when it made a significant entry into the crypto scene by acquiring United States exchange Poloniex at the end of February.

The funding round was led by Bitmain and drew support from existing investors including IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, and Pantera, and new investors Blockchain Capital and Tusk Ventures. "It is hard to use something like bitcoin if the volatility is so high", Circle's founder and CEO Jeremy Allaire stated.

As an institutional exchange with high volume trading, Circle recently, they doubled their minimum order size from $250,000 to $500,000. Its other investors include Goldman Sachs and Baidu.

Circle is having a big year.

Early this year, Circle acquired popular cryptocurrency exchange Poloniex in a massive deal worth $400 Million.

Bringing Poloniex into the fold put Circle on track to generate more than $1 billion in annual revenue, Fortune reported.

Circle is a company that has seriously focused on the growth and expansion of its services in the recent months.

With business apparently humming, the company is making more moves.

On Tuesday, May 15th, Circle announced a strategic partnership with Bitmain where the latter is said to have invested $110 million in Circle for the development of the CENTRE platform and the USDC project. At a media event, Jeremy Allaire, the Chief Executive Officer of Circle said: "Where the volatility is so high and the accuracy to predict things is unstable, using a payment method like bitcoin can get hard".

If blockchain tech and cryptocurrencies take off in the way Circle and its partners envision, people will be able to "transmit value to anyone, anywhere, instantly, at zero cost, the same way I can share my opinion globally at zero cost or share content with someone instantly, globally", Allaire told Xconomy. He said the digital currency they are trying to create makes it more possible.

Circle further noted that "Bitmain will help CENTRE introduce multiple fiat stablecoins in a variety of geo-currency zones".

Bitmain will also join CENTRE's efforts to introduce multiple fiat-backed stablecoins and provide financial interoperability around the world.

Jeff Engel is a senior editor at Xconomy.

Other reports by Iphone Fresh

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