Circle, the company behind USD Coin (USDC), has bagged funding worth $400 million from different players, including Fidelity Management, BlackRock Inc, and Research LLC, signalling traditional finance interest in the crypto space.
As one of the largest tokens in terms of market capitalization, USDC has just surpassed Tether (USDT) by reaching a $40 billion market cap on the Ethereum network, according to online media Anue, citing data from CryptoRank data.
Currently, USDC’s presence in the crypto market continues to sit fifth among the top-ten cryptocurrencies, with a market capitalization over $50.68 billion, according to CoinMarketCap.
Circle’s partnership with BlackRock, a leading American multinational investment company, will enhance capital market applications for USDC.
BlackRock will also be the primary asset manager for USDC’s cash reserves.
The penetration of cryptocurrencies in traditional finance continues to gain steam. BlackRock’s CEO Larry Fink has shown receptiveness to this sector because he sees it as a stepping stone toward helping clients.
Rob Goldstein, the chief operating officer at BlackRock, acknowledged:
“We believe digital assets and blockchain technologies are going to become increasingly relevant for BlackRock and our clients.”
Circle’s CEO, Jeremy Allaire, noted that adding BlackRock as a strategic investor will boost USDC’s adoption. He pointed out:
“Dollar digital currencies like USDC are fueling a global economic transformation.”
Other investors in the project include Fin Capital and Marshall Wace LLP, with the funding round anticipated to end in the second quarter.
Circle continues to make notable strides in the corporate world. Earlier this year, the Chicago-based company launched a new account service that enabled corporate customers to deposit, withdraw, receive and store cryptocurrencies through their account and settle all payments in USDC.
Furthermore, the newly added feature would enable corporate accounts to integrate cryptocurrency trading into their corporate accounts’ operations and offers eligible investors a stablecoin lending program called Circle Yield, Inc., which offers annual returns of up to 4% to 6%.
Image source: Shutterstock