Circle lands $400m funding round featuring BlackRock, Fidelity
US fintech firm Circle has entered an agreement for a $400 million funding round featuring contributions from BlackRock, Fidelity, Marshall Wace and Fin Capital.
Circle raises $400m
The funding round is expected to close in the second quarter of 2022.
Circle last raised $440 million in a funding round in May last year.
In addition to its investment and primary role as asset manager of USDC cash reserves, BlackRock has also entered a broader partnership with Circle to explore capital market applications for USDC.
Circle is a fintech company that enables businesses of all sizes to utilise digital currencies and public blockchains for payments, commerce and financial applications worldwide.
The company also operates SeedInvest, a start-up fundraising platform in the US.
Circle says that the new funding will be used to accelerate its growth as demand for dollar digital currency rises. It claims that USDC is one of the fastest growing dollar digital currencies with over $50 billion in circulation.
Jeremy Allaire, co-founder and CEO of Circle, says dollar digital currencies are “fueling a global economic transformation”.
“This funding round will drive the next evolution of Circle’s growth,” he adds.
Circle announced it plans to become a national digital currency bank in August 2021. Allaire said at the time that full-reserve banking built on digital currency technology will lead to a “more efficient” financial system as customer deposits will be backed by USDC, enabling them to be withdrawn quickly when required.
