The latest Series E fundraising round of $110 million was led by Bitmain and also includes support from other companies like IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, and Pantera along with two new investing participants Tusk Ventures and Blockchain Capital. Again, this pretty much goes against the whole point of cryptocurrencies, which were originally created to present a transparent financial market free of regulation from federal government and the influence of big banks.
Circle doesn't want its USD Coin to be subject to the instability and inflation inherent to other unregulated cryptocurrencies, so it will tie the value of a coin to that of a USA dollar, according to CNBC. This means that the mobile payments company, which also offers cryptocurrency trading facilities, is now valued at somewhere in the region of $3bn - with previous backers including Goldman Sachs and Baidu.
Circle crypto firm brings enthusiasts an exciting announcement.
Circle has now introduced a new stablecoin called USD Coin whose value at any given point in time will be fixed and equal to one U.S Dollar.
In February, it emerged that Circle had confirmed the purchase of US-based Poloniex in a deal estimated at $400m that would enable Circle to directly compete with one of the biggest cryptocurrency exchanges in the world, Coinbase. At a media event, Jeremy Allaire, the Chief Executive Officer of Circle said: "Where the volatility is so high and the accuracy to predict things is unstable, using a payment method like bitcoin can get hard".
Is Circle making the right moves?
According to Circle, Bitman will also be joining CENTRE's efforts to implement numerous fiat-backed stablecoins that aim to provide financial interoperability around the world. Circle said each token, called the (USDC) Circle USD Coin, will be backed by the reserves of USA dollars.
According to Circle though, the key difference between USDC and other fiat-based cryptocurrencies is that it plans to ensure regulatory compliance for its cryptocurrency.
Circle further noted that "Bitmain will help CENTRE introduce multiple fiat stablecoins in a variety of geo-currency zones". This, it says will make it possible for consumers and businesses to transfer value even more efficiently.
Initially announced late a year ago, CENTRE is an open-source initiative from Circle which would allow both cryptocurrencies and fiat currencies to be transferred in a digital form, running on Ethereum Blockchain with its own ERC-20 token.
Jeff Engel is a senior editor at Xconomy.