Circle Raises $400M Funding Round, Partners With BlackRock

Crypto payments company Circle – the issuer of USDC – has announced a $400 million funding round, along with a strategic partnership with BlackRock.

Circle has raised $400M from major finance firms including Blackrock, Fidelity, Marshall Wace, and Fin Capital. Among them, Blackrock has also entered a strategic partnership with Circle, and plans to explore applications for USDC in capital markets.

In addition to its corporate strategic investment and role as a primary asset manager of USDC cash reserves, BlackRock has entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USDC. BlackRock will also play a role as an asset manager of USDC cash reserves.

The new funding promotes Circle’s continued strategic growth as demand for dollar digital currency and related financial services continues to scale globally. USDC is one of the fastest growing dollar digital currencies with $50.7 billion in circulation.

Jeremy Allaire, Circle Co-founder and CEO, said:

“Dollar 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 drive the next evolution of Circle’s growth. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.”

Earlier this year, Circle was recently valued at $9 billion, after closing a deal to go public via a Special Purpose Acquisition Company (SPAC).

In the past year, the Circle has been making moves in the direction of becoming a U.S. national bank. In a filing in August of last year, it argued that a banking framework could reduce the risks around its business, including reliance on third-party payment systems. 

They also see Asia as a market with a lot of potential for USDC, and are planning to set up a regional headquarters in Singapore.