Goldman Sachs-Backed Circle Declares Cryptocurrency Version
May 16, 2018 7:39 am,
In an announcement nowadays, the fintech startup exposed that a new digital currency would be attached to the U.S. dollar, known as Circle USDC (USD Coin). According to the firm, the creation of blockchain-based adding and cryptocurrency properties have brought in a new age of the ‘open internet.’ Though, it adds that ‘a price-stable medium of exchange and supply of value is lost,’ which is desirable for ‘global financial interoperability to function dependably and reliably.’
In a blog post, the company specified that: “A price-stable currency, such as a token attached to the U.S. dollar, is serious for allowing normal adoption of blockchain technology for expenses as well as for supportive maturation in financial agreements built on smart agreement platforms, such as tokenized securities, loans, and belongings.”
It’s expected that with the USD Coin it will allow customers to purchase and use the USDC fiat tokens for expenses and trading within the cryptocurrency space. The main goal, however, that Circle’s digital token is trying to solve is instability.
“Managing in currencies which alter with extreme instability generates complexity and delicate settlement contracts, particularly when associated with transacting in “tokenized fiat money” or fiat-pegged crypto assets,” the blog enhances.
The USD Coin is being advanced by an organization recognized as the CENTRE, which will deliver independent oversight of Circle’s offering.
Last month, Jeremy Allaire, the CEO of Circle, publicized that the over-the-counter (OTC) wing of the company had decided to grow the minimum ticket size on Bitcoin trades from $250,000 to $500,000. This is regardless of the fact that digital currency exchanges have specified a drop-off in business from the surprise of the year.
Strategic Partnership With Bitman
In addition to the digital version of the U.S. dollar, Circle publicized a $110 million cash round led by cryptocurrency mining company Bitman, transporting its capitalization to nearly $3 billion. The funding round also involved IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, and Pantera, along with new depositors Blockchain Capital and Tusk Schemes.
According to Circle, Bitman will also be linking CENTRE’s efforts to implement frequent fiat-backed stablecoins that goal to deliver financial interoperability around the world.