Circle Raised $110M For ‘USDC’ US Dollar Pegged Cryptocurrency

The fintech startup Circle, was able to gather $100 million dollars in venture capital so as to create an Ethereum-compatible stablecoin pegged to the United States dollar. The information has been released by Circle on a press release uploaded on May the 15th.

Circle’s Stablecoin USDC

The new cryptocurrency will be called USDC (USD Coin) and will provide a simple web application for customers to use and buy USDC tokens for payments and trading in the ecosystem.

The report uploaded by Circle reads as follows:

“Circle USDC (USD Coin) provides a simple web app for customers to purchase and use USDC fiat tokens for payments and trading in the crypto ecosystem. USDC provides a full reserve US dollar-backed stablecoin, and is based on the open source fiat stablecoin framework developed by CENTRE.”

According to Circle, it is very important for the cryptocurrency ecosystem to have a stablecoin for enabling mainstream adoption of blockchain technology for payments. Additionally, the company explains that it would help support maturation in financial contracts built on smart contract platforms.

Moreover, Circle explains that existing approaches have lacked financial and operational transparency, and have operated in unregulated offshore jurisdictions. In addition to it, there were unknown banking institutions and audit partners involved, and these tokens were built with closed source technologies.

“Circle USDC solves these problems by offering a solution with detailed financial and operational transparency, operating within the regulated framework of US money transmission laws with established banking partners and auditors, and is built on an open source framework with an open membership scheme that any eligible FI can participate in (CENTRE),” reads the report.

Circle USDC will be targeting two major customer segments, 1) crypto asset traders that are looking for a price-stable token to hedge in and out of trading positions, and who desire high-speed and secure movement of fiat value across exchanges. 2) Token creators that want to offer a new tokenized financial contracts denominated in a price-stable currency such as the US-dollar.

As reported by Circle, the cryptocurrency will be released in the coming months and it will be based on the ERC-20 token standard – which means that can be used on any exchange that supports it and with an ERC-20 compatible wallet.

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