USD Backed Coin To Be Launched By Circle
Circle is a firm based in cryptocurrency. The firm was able to raise $110mn USD in a Series E fundraising that was conducted by the Chinese firm Bitmain Technologies. Alongside coinbase, Circle is now one of the most well-funded cryptocurrency companies in the US.
Circle has in mind to create a stable coin similar to the currency Tether (USDT). This is beside its mobile project called ‘Centre’ that also comes with several other plans.
Circle says the money raised from the fundraising, that gathered big investors like Bitmain Technologies, Blockchain Capital, Pantera, Digital Currency Group and other venture firms, is meant to launch the new cryptocurrency that will be backed by the price and reserves of USD.
The said token is going to be called ‘USD-C’and will be based on the Ethereum network.
Circle says that its ancillary project ‘Centre’ project will be in charge of the USD-C protocol. It is circle’s belief that a cryptocurrency attached to a fiat currency can be of more benefits to the blockchain ecosystem.
Jeremy Allaire, founder and CEO of Circle, explained: “It is difficult to use something like bitcoin if the volatility is so high.” “Something like this makes it more possible.”
Circle said Bitmain will be assisting them with the ‘Centre’ project and the USD0C launch. “Bitmain will help Centre introduce multiple fiat stablecoins in a variety of geo-currency zones,” the company explained.
About other ‘stablecoins’ being used in the markets right now that lack transparency as the firm says: “Existing fiat-backed approaches have lacked financial and operational transparency, have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies.”
Circle considers itself still very late with respect to the present time, even though they have been in existence for the past five years. In addition to Centre and the USD-C token, they are also planning for Circle Invest, Circle Trade, Circle Pay and Poloniex exchange which has just been acquired. Circle says: “We see the future of the global economy as open, shared, inclusive, distributed, and powerful — not only for a few chosen gatekeepers but for all who will connect.”