Boston-based cryptocurrency firm Circle announced it has raised $110 million in a Series E funding round led by Chinese mining giant Bitmain Technologies. The funding places Circle among the most well-financed cryptocurrency companies in the United States, alongside Coinbase. Circle also revealed plans to issue a dollar-backed cryptocurrency called USD-C, built on the Ethereum network and managed by its subsidiary project, Centre.
Funding Round Details and Investors
The Series E round included participation from Bitmain, Blockchain Capital, Pantera, Digital Currency Group, and other venture firms. Circle CEO Jeremy Allaire emphasized the need for stable cryptocurrencies to enable broader adoption: "It is difficult to use something like Bitcoin if the volatility is so high. Something like this makes it more possible." The company aims to address the instability that has hindered mainstream use of digital assets.
USD-C Stablecoin and Centre Protocol
USD-C is designed as a 1:1 dollar-pegged stablecoin, fully backed by US dollar reserves. Circle criticized existing fiat-backed approaches for their lack of financial and operational transparency, operating in unregulated jurisdictions with unknown banking partners and closed-loop technologies. The Centre project will open-source the protocol to ensure transparency and interoperability.
Partnership with Bitmain
Bitmain will not only provide capital but also collaborate on introducing multiple fiat stablecoins across various geographic currency zones through Centre. Allaire described the partnership as a step toward bridging centralized and decentralized finance. Circle also outlined expansion plans for its existing services: Circle Invest, Circle Trade, Circle Pay, and the recently acquired Poloniex exchange.
Circle stated that despite celebrating its fifth anniversary, the company feels it is "just getting started." USD-C is expected to launch in summer 2018, competing directly with Tether (USDT) and other established stablecoins. The company envisions a future global economy that is open, shared, inclusive, and distributed — not only for a few gatekeepers but for all who connect.