BlackRock backs USDC issuer Circle in $400 million investment round

BlackRock the world’s largest asset manager, will explore integration of USDC into traditional finance as part of a strategic partnership with Circle .

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Circle the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. issuing firm USD Coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. (USDC), announced a USD $400 million financing round that included participation from renowned financial companies BlackRock yFidelity. The venture capital fund was also included,Marshall Wace LLP and the fintech-focused investor, Fin Capital capital is most commonly defined as the large sum of money you would use to invest. .

The company announced the news in a press release this Tuesday, in which it assured that fresh capital will help promote its growth and that of its USDC coin. With more than USD$50 billion in circulation, USDC is currently the second largest stablecoin in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market.

“ Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. dollar currencies like USDC are driving a global economic transformation, and Circle’s technology infrastructure is at the center of that change. This round of funding will fuel the next evolution of Circle’s growth. “, dijo Jeremy Allaire , cofundador y CEO de Circle in the statement.

BlackRock Partners with Circle

As part of the investment round,Circle announced a strategic partnership with BlackRock . The collaboration is aimed at helping the asset management giant to explore the applications of USDC for the capital markets . If the deal is successful, the firm with more than USD $10 billion under management could bring the stablecoin to the traditional financial market an area or arena, online or offline, in which commercial dealings are conducted. for the first time.

According to the statement, BlackRock will also function as “ the principal asset manager of the USDC’s cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. reserves “.

The most recent injection of $400 million comes less than a year after Circle raised an additional $440 million in a funding round that includedFidelity, Digital Currency currency is a medium of exchange that defines value. Group, FTX and others. The firm is also preparing for go public in the US. with a valuation of USD $9 billion through a SPAC a special purpose acquisition company (SPAC) is formed by investors in order to publicly list an organization without going through the troubles that come with the traditional IPO process. merger.

According to CoinDesk The most recent round of investment has not changed the terms of the merger with Concord Acquisition Corp a special purpose acquisition company (SPAC). The valuation also remains the same.

The news also comes in the midst of several associations of Circle con grandes nombres de la industria financiera tradicional. The agreement with BlackRock could be part of a broader strategy of the company, which a few weeks ago announced a partnership with BNY Mellon. As part of that collaboration, the New York-based U.S. banking corporation now acts as the primary custodian a custodian is responsible for safely holding assets for an institution or individual for a variety of purposes. of the assets backing the USDC stablecoin.