Circle – the Goldman Sachs-backed cryptocurrency startup raised USD 110 million in a fundraising round, led by Bitmain, the mining hardware manufacturer. Circle and Bitman have partnered up to create their token, which would be backed by the US dollar, which would further result in Circle’s valuation being raised to USD 3 billion, with 600% increase from 2016.
The token, namely Circle USD Coin (USDC), would be an ERC20 token based upon Ethereum network. Circle envisions that a cryptocurrency whose value is orchestrated by a traditional currency would boost the adoption of the blockchain based system.
As Circle’s CEO Jeremy Allaire mentioned in an industry conference, “It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”
Circle aims at providing an additional level of transparency as compared to other Altcoins.
“Existing fiat-backed (cryptocurrency) approaches have lacked financial and operational transparency,” Circle mentioned in a blog.