Circle Owned Stable cryptocurrency Backed With $110 Million Fund by Bitmain
Recently, Circle was involved in the operation of a brokerage service which enables users to make purchases and also all cryptocurrencies such as Bitcoin easily.
Just after they obtained around $130 million funding from IDG Capital Partners and also Goldman Sachs, Circle was involved in an association with a general money transfer organization and has from the time been using blockchain technology as the infrastructure base layer.
Circle, therefore, made an announcement of the re-entry to the crypto sector and will back up Bitmain. It additionally revealed the plans to launch a stable cryptocurrency which will act in competition with USD-backer Tether, Maker DAO and also Basis which was involved in the raising of around $133 million venture capital firms. This is according to CCN report.
At the current moment, tether has major ties with Bitfinex and it has been dominating the cryptocurrency sector as a stable coin which has been backed by US dollar. Tether-to-BTC on Binance which is the most used crypto exchange in the world represents the most frequently trades crypto pair on that platform and does not support the fiat withdrawals and also the deposits.
During an interview in the Consensus 2018 with Joon lan Wong where the organization made announcements on the investments in Circle, Jihan Wu, Bitmain’s CEO and founder said that general Catalyst, Accell and ODG had a participation in the $110 million investment round.
“Our investment team is still quite small and we work fast,” said Wu to Wong. He further explained that the funding round ended around three weeks after the discussion initiation. Even though Bitmain is majorly focused on the investment in the blockchain based projects, Wu said that the team was involved in working swiftly with Circle in backing the upcoming ventures.
During the previous interviews, Wu made explanations that he sees future financial organizations cooperating well with the crypto backed private central banks. Additionally, stable crypto development has the possibility of the private central bans establishment.
“It’s a very important enabler for a private central bank. Currencies can do good or bad things, so we need a certain framework to limit money laundering risks. If we have an open platform we can limit the potential negative things.”
Edge over Tether
Report from various organizations like BitMEX research has tracked the US dollar-based reserves of the tether to the bank in the Noble bank.
BitMEX research depicted;
“Over the weekend, the Commissioner of Financial Institutions of Puerto Rico released aggregate financial-system data for the calendar year ended 2017. Bank deposits in the International Financial Entities (IFE) category, which includes Noble Bank, were $3.3 billion, up 248% in the quarter ended December 2017. Total assets in the category were $3.8 billion, up 161% in the quarter.”
Tether has however not released the audit reports apart from the Friedman LLP 2017 audit report. Failure for the release of this report led to questioning of Tether by investors. However, their USD holdings are likely to be legitimate.