Crypto firm Circle has announced a $400 million funding round. The company behind stablecoin USDC has entered into an agreement to run the round which is expected to close in the second quarter of the year, according to a press release.
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The round will include the world’s largest asset managers BlackRock, Fidelity Management and Research, Marshall Wace LLP and Fin Capital. The round will fuel Circle’s growth amid an increase in demand for digital dollars, the release said.
Jeremy Allaire, co-founder and CEO of Circle, made the following claims about their agreement with BlackRock and the potential for USDC to support economic change around the world:
Digital dollar currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure is at the heart of that change. This funding round will drive the next evolution of Circle’s growth. It is very exciting to add BlackRock as a strategic investor in the company. We look forward to further developing our cooperation.
as Allaire said through his Twitter account, in addition to a strategic business investment, BlackRock will expand its partnership with the crypto firm. Circle will be able to expand USDC’s use cases in the TradFi sector.
That way, the stablecoin could see more adoption. BlackRock will also “manage significant assets for the reserves that support USDC”. The goal is to make this stablecoin a “leading standard as the global economic system migrates to digital currencies and blockchains,” Allaire said.
On the implications for the US and its role in the crypto industry, Circle’s CEO added:
As the US seeks a leadership role in digital currencies, we firmly believe that the power of innovation in the private sector, building on an open financial system on public blockchains, can strengthen America’s leading role in the internet economy. .
Crypto attracts investors and talent from TradFi
The crypto industry is becoming increasingly attractive to institutional players. BlackRock began “dabbing” with digital assets in 2021, as stated by the firm’s Chief Investment Officer Rick Rieder.
This partnership seems to suggest an optimistic stance from the world’s largest asset manager and a long-term view for cryptocurrencies and digital assets. In addition to this announcement, CENTER announced that Linda Jeng, veteran of financial regulation, and operations expert Danielle Harold will join their ranks.
Back from Circle and leading crypto exchange Coinbase, CENTER is focused on removing friction and setting standards for the blockchain sector. According to a press release, Jeng has worked at the US Federal Reserve, US Treasury Department, US Senate and the private sector.
On the other hand, Harold previously worked at Vereniging Diem as Head of Business and Payments Operations. David Puth, CEO of Center said this about their new members:
I am delighted to welcome executives of this caliber to our team. Both Linda and Danielle bring an abundance of experience that will guide our organization in setting standards for the fast-growing blockchain space.
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At the time of writing, the crypto’s total market cap stands at $1.8 trillion with sideways movement on the 4-hour chart.