How Crypto Company Circle Announced $400M With BlackRock


Crypto company Circle announced a $400 million funding round. The company behind stablecoin USDC entered an agreement to conduct the round that is expected to close in the second quarter of the year, according to a press release.

Related Reading | Circle Doubled Its Value To $9 Billion With New SPAC Deal

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The round will see participation from the world’s biggest asset manager BlackRock, Fidelity Management and Research, Marshall Wace LLP, and Fin Capital. The round will promote Circle’s growth amid an increase in demand for digital dollars, the release said.

Jeremy Allaire, co-founder, and CEO at Circle, claimed the following about their agreement with BlackRock and the potential for USDC to support economic change around the world:

Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. This funding round will drive the next evolution of Circle’s growth. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.

As Allaire said via his Twitter account, in addition to a strategic corporate investment, BlackRock will expand its cooperation with the crypto company. Circle will be able to expand USDC’s use cases in the TradFi sector.

In that way, the stablecoin could see more adoption. BlackRock will also manage “significant assets for the reserves that back USDC”. The objective is to make this stablecoin a “preeminent standard as the world economic system migrates to digital currency and blockchains”, Allaire said.

On the implications for the U.S. and its role in the crypto industry, Circle’s CEO added:

As the US seeks out a leadership role in digital currency, we firmly believe that the strength of private sector innovation, building on an open financial system on public blockchains, can cement America’s leadership role in the internet economy.

Crypto Attracts Investors And Talent From TradFi

The crypto industry is increasingly becoming more attractive for institutional players. BlackRock began “dabbing” with digital assets in 2021, as stated by the firm Chief Investment Officer Rick Rieder.

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This partnership seems to suggest a bullish stand from the world’s largest asset manager and a long-term view for cryptocurrencies and digital assets. In addition to this announcement, CENTRE revealed that financial regulation veteran Linda Jeng and operations expert Danielle Harold will join their ranks.

Back by Circle and leading crypto exchange Coinbase, CENTRE is focused on removing friction and creating standards for the blockchain sector. According to a press release, Jeng served at the U.S Federal Reserve, the U.S. Treasury, the U.S. Senate, and in the private sector.

On the other hand, Harold previously worked with the Diem Association as Head of Business and Payments Operations. David Puth, CEO at Centre commented this on their new members:

I am thrilled to welcome executives of this caliber to our team. Both Linda and Danielle bring an abundance of experience that will guide our organization as we create standards for the burgeoning blockchain space.

Related Reading | Why Centre Will Work With FTX And Alkemi On Project Verite

At the time of writing, the crypto total market cap stands at $1.8 trillion with sideways movement on the 4-hour chart.

Crypto Circle BlackRock
Source: Tradingview




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