Cryptocurrency startup Circle Internet Financial Ltd, which is backed by Goldman Sachs, closed a $110 million Series E fundraising round led by Chinese bitcoin mining giant Bitmain Technologies Ltd. The financial technology startup is now worth about $3 billion.
The mobile payments and cryptocurrency trading firm has also partnered with Bitmain to launch fiat-based digital tokens, through Circle affiliate CENTRE project. The company, which has 7 million users, would incorporate U.S. dollar coin in its Circle Pay payment app and in Circle Trade. Circle will also offer it in its cryptocurrency exchange Poloniex.
As per reports, U.S. dollar coin will be an ERC-20 token, based on the Ethereum network.
Circle Chief Executive Officer Jeremy Allaire reportedly said, "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."
The latest fundraising round includes support from Accel, Blockchain Capital, Breyer, Digital Currency Group, General Catalyst, IDG, Pantera and Tusk Ventures. In 2016, Circle reportedly was valued at $480 million. Earlier investors include Goldman Sachs, Baidu Inc. and investment bank China International Capital Corp.
With the moves, Allaire reportedly expects the company to be a conglomerate of cryptocurrency services rather than just an exchange or payment startup.
In February, Circle acquired U.S.-based digital asset exchange Poloniex for reported value of around $400 million.
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