Goldman-backed Circle Launches a Dollar-backed Crypto

Goldman-backed Circle Launches a Dollar-backed Crypto

Goldman-backed Circle Launches a Dollar-backed Crypto

Goldman Sachs-backed, New York (Reuters) digital currency startup - Circle - has raised up to $110 million in an investment round that is led by Bitmain Technologies - a Chinese digital currency mining company.

Companies and even countries have announced intentions to create coins backed by precious metals like gold or silver or other commodities like oil or diamonds. Circle said in its statement, "Bitmain Co-founder and CEO Jihan Wu is well known for espousing a vision similar to ours regarding the creation and adoption of a new global economy powered by cryptographic assets, distributed contracts, and open source blockchain technology".

But the most interesting projects right now are probably CENTRE and a new tokenized United States dollars coin.

The new tokens will be Ethereum-based, and called US Dollar Coins, or USDC - mirroring the now available USDT coin overseen by Tether, that claims to peg its value 1:1 with the Dollar (though this is now unverified). Yet in many ways, despite Circle celebrating a fifth anniversary this fall, we feel we are still just getting started. Allaire added, "The issuing of the new coin will be initially done by the startup, which will run on a network managed by a wholly owned subsidiary of Circle, called Centre". Ever since the announcement of the acquisition of Poloniex -one of the oldest and most recognized exchanges in the crypto sphere- the company's renewal efforts have been extremely beneficial both to the corporation and to the ecosystem as a whole. The company now runs a cryptocurrency-based mobile payments application, an over-the-counter (OTC) trading business, and a cryptocurrency exchange. Jumping on the Ethereum bandwagon Following the close of the round, Circle said it would create a new cryptocurrency, that uses the Ethereum blockchain, with it's value "pegged to the price of the US dollar", according to Reuters. Goldman Sachs also invested in the company in a previous round.

It is worth noting that Circle's USDC is not the first cryptocurrency aimed at stability, or to even be pegged against the US Dollar.

Читайте также: Court declines to stay execution of judgment recalling Omo-Agege to Senate

According to Circle though, the key difference between USDC and other fiat-based cryptocurrencies is that it plans to ensure regulatory compliance for its cryptocurrency. Circle claims to basically be building the infrastructure of free global p2p transactions.

Ethereum's blockchain might be a popular choice for most ICOs due to the simplicity it has to offer, but it should hardly be the pick of such a well-funded project, given the scalability issues it continues to suffer from.

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

Last November, Tether printed 50 million coins in less than a week without proof of backing from equivalent Dollars in the reserve - raising concerns over the actual value of the currency.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related news