Exclusive: Circle plots sterling backed stablecoin after $400m capital raise
Circle, the issuer of the world’s second largest stablecoin, USDC, is pursuing international expansion after securing $400m in funding.
The capital raise, which is expected to close in the first half of the year, is led by big name investors including the world’s largest asset manager Blackrock, Fidelity Management, Marchall Wace and Fin Capital.
Jeremy Allaire, Circle’s co-founder and chief executive, told City PM the company is committed to “aggressively” hiring staff in Britain and exploring the launch of a sterling linked stablecoin, subject to regulatory approval.
“We’re expanding in the UK,” Allaire confirmed to City PM. While Circle currently has just 12 UK employees it is committing “considerable capital” to “aggressively hiring staff.”
“We would be very excited to issue a pound sterling stablecoin, if the regulatory framework becomes clearer, and build on the position that we have with dollars,” said Allaire, adding that he hopes to issue the new asset “as soon as possible.”
Stablecoins are crypto tokens typically pegged to the value of currencies such as the US dollar. Since its launch in 2018 USDC’s market capitalisation has quickly grown to exceed $50bn, accounting for over 2.5 per cent of the global crypto market’s $1.8 trillion value.
In a sign that governments are increasingly sold on tokenized assets, the UK’s chancellor last week announced plans to recognise stablecoins as a valid form of currency to transform Britain into a “global hub” for digital assets.
Boston-based payments firm Circle has been sending delegates to the UK to cosy up to regulators at HM Treasury, the FCA and Bank of England for more than five years, Allaire revealed.
He added that the integration of stablecoins into the mainstream economy will help to “ensure that pound sterling remains competitive as a currency on the internet.”
Following the capital raise, Circle also plans to explore capital market use cases for USDC through a strategic partnership with Blackrock, which is the primary asset manager for USDC’s cash reserves.
“There are lots of opportunities to explore here,” said Allaire. “Big picture, I think Blackrock getting behind the largest regulated dollar digital currency in the world is significant, and represents a major moment in the development of this market.”
Today’s funding announcement comes a matter of months after Circle revealed it had doubled its valuation to $9bn through a SPAC deal with Concord Acquisition Corp. The deal, which will see Concord and Circle merge to become a publicly traded business expected to launch on the New York Stock Exchange, is expected to complete by the end of the year.
Read more: Crypto company Circle doubles valuation to $9bn as it eyes SPAC deal