Circle public debut in question after the giant $400m raise
Circle, the fintech company that owns USD Coin, raised a whopping $400 million as the industry continued growing. The firm also announced that it had formed a strategic partnership with BlackRock, the biggest asset manager in the world.
Circle giant fund
The stablecoin industry is growing rapidly as more people embrace digital transactions. The biggest stablecoin is known as Tether, which has a market cap of over $82 billion. It is followed by USD Coin, which is valued at $50 billion. Other popular stablecoins are Binance USD and Terra USD.
USD Coin was created using Stellar’s platform by Circle, a Boston-headquartered company. In a statement on Tuesday, Circle announced that it had raised $400 million from investors like Blackrock and Fidelity. Other investors were Marshall Wace and Fin Capital.
The firm said that it will use these funds to fund its growth in a time when its business is doing well. Most importantly, the statement added that Blackrock had entered a broader strategic partnership with Circle. As part of this partnership, Blackrock will explore capital market applications for USDC. In a statement, a co-founder of Circle said:
“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.”
In addition to the USD Coin stablecoin, Circle offers other products like Payments and Treasury, Investments, and SeedInvest.
Circle plans to go public
Circle has plans to go public. In 2021, the company reached a deal with a SPAC known as Concord Acquisition in a deal that valued it at $4.5 billion. A few months later, as demand for the stablecoin was rising, Circle decided to pause the deal and doubled its valuation to $9 billion.
Therefore, there is a likelihood that Circle and Concord will disagree on a viable valuation metric with the new funding. If things go according to plan, the company will go public in December of this year.