Circle, a major peer-to-peer payments company and the main operator of UDC Coin (USDC), has announced a $400 million funding round and a new partnership with US investment firm BlackRock.
The USDC issuer has agreed to a financing round with investors including BlackRock, investment advisory firm Fidelity Management and Research, London-based hedge fund Marshall Wace and Fin Capital, as Circle officially Announced Tuesday. The investment round is expected to close in the second quarter of 2022.
In addition to providing strategic investments and being the leading asset manager of USDC's cash reserves, BlackRock has entered into a broader strategic cooperation with Circle. The association specifically plans to explore capital market applications for USDC, the announcement notes.
The funding is aimed at furthering Circle's development amid growing demand for the US dollar-based digital currency. USDC is one of the fastest growing digital dollar currencies, reaching a market capitalization of $50 billion in February 2022 after launch in september 2018.
At the time of writing, Circle is the second largest stablecoin by market cap, Next only tether (USDT) and is the fifth largest cryptocurrency by value, according to data from CoinGecko.
Related: Circle valuation doubles to $9 billion following review of Concord merger deal
โThis funding round will fuel the next evolution of Circle's growth. It is especially gratifying to bring BlackRock on board as a strategic investor in the company. We look forward to developing our partnership,โ said Jeremy Allaire, Circle's co-founder and CEO.
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