USDC Issuer Circle Announces $400 Million BlackRock-Backed Investment
Circle Internet Financial, the firm behind the USDC stablecoin, announced a $400 million investment round on Tuesday to expand the scope of the business’s digital offerings.
According to a statement made by the global fintech start-up, the record-breaking fundraising will include participation from Blackrock, Inc., the world’s largest asset management.
Among the other businesses that participated in the financing round are Fidelity Management and Research, Marshall Wace LLP, and Fin Capital.
While the agreement is in place, the stablecoin issuer anticipates finalising all contract details by the end of Q2 2022.
Co-founder and CEO Jeremy Allaire commented on the arrangement, citing a significant surge in demand for dollar-pegged digital assets such as stablecoins. Allaire said that the current funding infusion would enable the fintech behemoth to boost its operations and expand into global markets.
USDC and other dollar-denominated digital currencies are catalysing a worldwide economic shift, and Circle’s technical infrastructure is at the heart of that transition. This round of investment will fuel Circle’s next phase of expansion. It’s very satisfying to have BlackRock join the firm as a strategic investor. We look forward to expanding our collaboration.”
Additionally, Tuesday’s news release emphasised another aspect of the arrangement with Blackrock. USDC’s cash reserves will now be managed by the asset management giant. Additionally, both firms want to accelerate USDC adoption via capital market investments.
With over $51 billion in widespread circulation across the crypto ecosystem, the USDC issuer has concluded a slew of significant agreements aimed at altering the global financial environment.
The financial behemoth had received $440 million from investors in May 2021. Additionally, USDC’s issuer acquired a $9 billion market capitalization after the announcement of a merger with Concord Acquisition Corp, a regulated special purpose acquisition firm (SPAC).