Circle Announces Strategic Partnership with BlackRock to Expand Use of USDC

Circle is preparing a fundraiser of 400 million

Fundraising in the cryptocurrency sector continues to rain. Today, Circle announced €400 million funding roundwhich is scheduled to close by the end of the second quarter of this year.

The USDC stablecoin issuing company, alongside Coinbase, said via a statement that a funding agreement has already been reached with Marshall Wace, Fin Venture Capital as well as Fidelity Management and Research Company. BlackRock, the world’s largest asset manageris also one of the participants.

According to the press release, in addition to its role as main asset manager of USDC’s liquidity reservesBlackRock also entered into a “ wider strategic partnership with Circle so explore opportunities for using USDC in capital markets.

According to Jeremy Allairethe CEO and co-founder of Circle, USDC plays a crucial role in the economic transformation that is taking place:

“Dollar-backed 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 kick off Circle’s next phase of expansion. »

This partnership with BlackRock to develop the use cases of USDC follows FTX.US’ investment in Investors Exchange (IEC) a few days earlier, 2 scenarios that demonstrate a growing acceptance of cryptocurrencies by traditional finance.

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Growing market interest in stablecoins

As of this writing, USDC takes 2nd place on the stablecoin podium with over $50 billion in market capitalization, behind USDT and its $82 billion.

In January, we highlighted the drastically narrowing gap between the 2 main stablecoins. Indeed, during this period, the number of USDC circulating on the Ethereum (ETH) blockchain had officially exceeded that of USDT for the first time.

Unsurprising information, especially when one considers the multiple legal setbacks that Attached, the USDT issuing company, has accumulated over the past few years. Moreover, we can also see that despite the efforts that the latter continues, the USDC continues to gain ground.

Either way, this new round of funding demonstrates once again that even the biggest giants on Wall Street are gearing up for wider adoption of cryptocurrenciesdespite a regulation that seems to have trouble finding its place, especially if we consider it on a global scale.

For this purpose, larry finckthe CEO of BlackRock, said last month that the successive wars taking place all around the world would sooner or later encourage all countries to reconsider their dependence on the traditional banking system :

“A thoughtfully designed global digital payments system can improve the orderliness of international transactions while reducing the risk of money laundering and corruption. »

Therefore, it would seem that these will be the stablecoins that will lead the way towards this probable paradigm shift.

👉 Read also: The United Kingdom wants to become the world leader in cryptocurrencies thanks to stablecoins and NFTs

Sources: Circle press release, CoinGecko

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About the Author : Maximilien Prue


Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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