Circle Raises $400M, Eyes Capital Market Applications For USDC

USDC Issuer Circle Increases $400M, BlackRock is now Strategic Advisor

Circle was last valued at $9 billion and has received an additional $400 million of funding.

As per a Tuesday press release, the stablecoin issuer has entered into a funding agreement for a $400 million raise with a group that includes the world’s largest asset manager BlackRock, with over $10 trillion in assets under management, fourth-largest Fidelity with over $4.2 trillion, and smaller investment firms Marshall Wace LLP and Fin Capital.

Circle CEO and co-founder Jeremy Allaire commented on the raise.

“This funding round will drive the next evolution of Circle’s growth… digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change,” he added.

Circle has also raised additional capital through a strategic partnership with BlackRock. This partnership should allow the firm to explore capital market opportunities for USDC. If the company is successful, integration of USDC with traditional capital market would be a first-of-its-kind, since stablecoins remain exclusively crypto-native.

Today’s $400 million raise comes less than a year after Circle raised $440 million in a funding round, including Fidelity, Digital Currency Group, FTX, and others. In February of this year, the firm announced its intention to go public with a special purpose acquisition corporation (SPAC), Concord Acquisition Corp. This merger would bring it to a valuation of $9 billion. The merger is expected to take place between December 2022 & January 2023. After that, the company will be listed under the ticker CRCL on the New York Stock Exchange.

Circle’s USDC stablecoin has a market capitalization around $50.7 billion. This is behind Tether which boasts a market value of about $82 billion.

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