Fintech firm Circle, the developer of the second-largest stablecoin, USDC, has confirmed raising $440 million from investors. The firm intends to use the funds to foster business growth and market expansion.
According to the press release, the leading institutional and strategic investors involved in the financing included FTX, Atlas Merchant Capital, Fidelity Management and Research Company, Breyer Capital, Marshall Wace, Valor Capital Group, Intersection Fintech Ventures, Willett Advisors, Digital Currency Group, and Pillar VC.
The firm has been looking to achieve various objectives such as business growth, organizational development, and exploring new markets. The firm will channel these funds to allow them to achieve these objectives.
Achieving Global Expansion
Circle has been looking into achieving global expansion and has made several strategic steps to achieve this. The firm has hired some of the best minds in the industry to help them meet their goals.
Circle’s executive team includes Dante Disparte, the Chief Strategy Officer and the Head of Global Policy, Mandeep Walia, as the Chief Compliance and Risk Officer, and Jeremy Fox-Geen, the Chief Financial Officer. With this robust team, Circle can be assured of meeting global demand for its products and services. The firm is also actively looking into integrating the traditional financial system into blockchain technology to achieve overall growth.
Speaking on this development, Jeremy Allaire, the co-founder and CEO of Circle, stated, “As a company, Circle has remained committed to our mission of raising global economic prosperity through the power of the digital currency, blockchains, and breakthroughs in programmable money.
The sustained global demand for our services, powering the growth of USDC as the most trusted and well-regulated dollar digital currency, signals that we are one step closer to achieving our mission. With powerful backers who are committed to our mission and vision, we will redouble our efforts to expand into new markets, continue driving fundamental technology innovation and grow our team.”
Growth of USDC
Circle has also played a crucial role in the increasing value of USD Coin (USDC) in the past year. Currently, the coin is the second-largest stablecoin globally, coming second after Tether (USDT). Its market capitalisation stands at around $22 billion. This year alone, USDC has grown by 436%.
The recent funding also comes at a strategic time for the company, given that they are about to finalize a special purpose acquisition vehicle (SPAC) deal. According to sources close to the firm, SPAC will be acquired at a target valuation of $4 billion.