Circle raises $400 million, partners with BlackRock

Circle announced on Tuesday that it had raised $400 million through a funding round.

Circle raises $400 million, partners with BlackRock

Circle announced on Tuesday that it had raised $400 million through a funding round. Moreover, BlackRock is also providing strategic investors to the firm.

Fidelity Management and Research, Marshall Wace LLP, and Fin Capital also contributed to the round, which is expected to close in the second quarter.

The Centre Consortium released its stablecoin USD Coin (USDC) in 2018, which is pegged to the U.S. dollar 1:1. That means every USDC is backed with $1 in reserves. Circle and Coinbase are two of the Center's founding members.

Circle will explore capital market applications through its partnership with BlackRock, according to the announcement. USDC cash reserves will also be managed by BlackRock.

Circle's technology infrastructure sits at the center of a global economic transformation fueled by digital currencies such as USDC. Circle's funding round will fuel the company's growth in the future," said Circle co-founder and CEO, Jeremy Allaire.

Furthermore, according to the company's own dashboard, USDC worth more than $50 billion is currently on the market. It recently reported a $9 billion valuation following a deal to go public via a Special Purpose Acquisition Company (SPAC).

Circle has been taking steps toward becoming a U.S. national bank over the past year. As part of its filing in August of last year, it suggested that a banking framework would reduce the risks relating to its business, including its dependence on third-party payment systems.