Circle and Bitmain partner for US Dollar backed Token

Circle and Bitmain partner for US Dollar backed Token

 Circle International Financial Has partnered up with the popular mining hardware manufacturer Bitmain. The partnership will bring about a token which will be backed by US Dollars and will be released by 2018 summer.

The partnership between the two crypto related companies has raised $110 million. The high fundraising had led to Circle increasing to $3 billion which means it has grown three times the value it was in 2016.

A press release was published on Tuesday, 15th May announcing the availability of tokenized US dollar coins, which is Circle’s and Bitmain’s new project.

The new token by the two companies will be targeted for the investors who prefer a much less volatile nature of cryptocurrency. The project will be called Circle USD Coin also known as USDC.

USDC will use the technology of ERC-20 tokens on the Ethereum network.

Circle’s CEO Jeremy Allaire said-

“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”

USDC will be helpful for Circle’s payment application along with its trading application. Apparently, according to co-founder Sean Neville, USDC will not have a fee as they want to increase its circulation.

The stable nature of fiat currencies along with the decentralization and security features of cryptocurrencies will help USDC become popular and reliable.

As of now, if USDC releases, it will be a threat to the already stable USDT which is a cryptocurrency developed by Tether.

USDT is the biggest cryptocurrency backed by fiat currencies, with $2.2 billion in circulation according to CoinMarketCap. However, Tether is undergoing severe issues due to not providing evidence and not auditing its accounts to show that Dollars held in reserve, in fact, backs its coins.

Bitmain has plans to assist Circle in developing more stable coins which are linked to fiat currencies and launching them successfully.

Image Source: “Flickr”

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