USDC Issuer Circle Announces $400 Million Investment Backed By BlackRock 14

USDC Issuer Circle Announces $400 Million Investment Backed By BlackRock

  • Stablecoin issuer company Circle has reached a huge capital investment agreement with the world’s largest asset management firm
  • The deal is worth a staggering $400 million and could help to widen Circle’s offering in the digital economy

USDC stablecoin issuer Circle Internet Financial secured a $400 million funding round to broaden the scope of the company’s digital products on Tuesday. According to a statement released by the global fintech start-up, the bumper fundraiser features participation from the biggest asset manager in the world, Blackrock, Inc. 

Other companies involved in the investment round include Fidelity Management and Research, Marshall Wace LLP, and Fin Capital to name a few.

While the agreement is in place, the stablecoin issuer expects to finalize all terms of the deal before the close of Q2 2022.

Commenting on the agreement, co-founder and CEO Jeremy Allaire cited a considerable increase in the demand for dollar-pegged digital assets like stablecoins. Allaire said the latest cash injection will allow the fintech giant to scale its services and tap global markets.

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. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership”

Furthermore, Tuesday’s press statement highlighted an additional part of the agreement with Blackrock. The asset management behemoth will now serve as a primary manager for USDC’s cash reserves. 

Also, both companies plan to drive USDC adoption by investing in capital market opportunities.

Circle Driving Digital Innovation With Strategic Partnerships 

With over $51 billion in broad-based circulation across the crypto ecosystem, the USDC issuer has closed a plethora of key agreements geared toward transforming the global financial economy. 

Earlier in May 2021, the fintech giant raised $440 million from investors. USDC’s issuer also achieved a $9 billion market valuation after announcing a merge with Concord Acquitiosn Corp, a regulated special purpose acquisition company (SPAC).