Circle bags Bitmain financial backing for stable dollar-linked cryptocurrency

USDC coin will be backed by audited deposits on a 1:1 basis, and available within Circle’s payment apps. 

Bitcoin mining company Bitmain, and Circle Internet Financial Ltd. are forming a partnership focused on creating a fiat-based cryptocurrency. The concept, which falls into the growing category of ‘Safecoinproposals for creating stable cryptocurrency, will apparently be a reality by the summer of this year. The news comes alongside the announcement from Circle that it has attracted a further $110 million in funding, the chief contributor being Bitmain. This means that the mobile payments company, which also offers cryptocurrency trading facilities, is now valued at somewhere in the region of $3bn – with previous backers including Goldman Sachs and Baidu.

The new tokens will be Ethereum-based, and called US Dollar Coins, or USDC – mirroring the currently available USDT coin overseen by Tether, that claims to peg its value 1:1 with the Dollar (though this is currently unverified). Circle says every USDC will be matched by a dollar bank deposit in an audited account, redeemable by verified buyers, removing the doubt and rumours that have, err… ‘circled’ USDT.

“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security,” Circle CEO Jeremy Allaire said, quoted by Bloomberg. “It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”

USDC will be included in Circle Pay, the company’s headline app, as well as in its Circle Trade market-making platform. It will also be listed on the Poloniex exchange.