$110 million investment in Ethereum-based coin backed by Dollars in Circle

According to the news in Bloomberg, Boston-based Circle Internet Financial, a developer of digital currency products, closed a $110 million investment round led by mining hardware manufacturer Bitmain.. The two companies will work together in the project, which aims to create a token backed by US dollars.

The investment has increased Circle’s valuation to approximately $3 billion.. The partnership between Bitmain and Circle has resulted in plans to develop a fiat-backed token or stablecoin aimed at addressing the volatile nature of some cryptocurrencies.. The USD-backed digital currency to be created within the scope of the project is called Circle USD Coin or USDC and will be launched by Circle this summer.

USDC will be an ERC-20 token based on the Ethereum network.. It will be backed one-on-one by USD, allowing users to enjoy the benefits of cryptocurrencies without the risk of volatility.. Circle’s CEO, Jeremy Allaire, said in an interview at the Consensus 2018 conference that the token will bring more transparency and said: a movable fiat version. This is a huge improvement on how fiat transfers can work for businesses and customers worldwide who want to use digital tokens for payments.” also wants to integrate with a crypto OTC desk and liquidity provider. The company also plans to offer USDC on cryptocurrency exchange Poloniex.. Company co-founder Sean Neville said that it has not yet been decided whether Circle will charge fees to traders who use USDC to increase circulation.

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