NEW YORK (Reuters) – Goldman Sachs-backed cryptocurrency startup Circle has raised $110 million in an investment round led by Chinese virtual coin mining giant Bitmain Technologies, Circle said on Tuesday.
Boston-based Circle also said it would create a new cryptocurrency pegged to the price of the U.S. dollar, enabling businesses and consumers to transfer value more efficiently. Each token, called Circle USD Coin (USDC), will be backed by reserves of U.S. dollars, Circle said. The effort is set to begin this summer.
Cryptocurrencies - Bitcoin - Hold - Forms - Payments
Cryptocurrencies such as bitcoin have struggled to take hold as viable alternative forms of payments, in part because of their extreme volatility.
However, many businesses are enamored with the underlying technology called blockchain, which they hope can help make transactions faster and cheaper.
Circle - Cryptocurrency - Value - Currency - Adoption
Circle believes a cryptocurrency whose value is pegged to a stable traditional currency can help drive adoption of blockchain-based systems.
“It is difficult to use something like bitcoin if the volatility is so high,” Circle Chief Executive Officer Jeremy Allaire said at a media event. “Something like this makes it more possible.”
The new coin will be initially issued...
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