Investment management firm, BlackRock has joined Circle, a crypto payment technology firm and the distributor of the USD Coin (USDC) in a $400 million funding round after it was declared earlier this week. This partnership will see BlackRock serve as a strategic investor in this fundraiser. Although other investment firms like Fidelity Management and Research, Marshall Wace LLP will also be involved.
Circle and Coinbase have both been the founding members of the USD Coin since 2018 when it was first issued. As a partner, BlackRock will serve as the key assets manager for the coin’s cash reserve which goes beyond its initial function as an angel investor for the digital assets payment firm.
The strategic collaboration will give an edge to BlackRock as it will be handed the responsibility of scrutinizing the available capital market request and uses of the USD coin. As announced, the funding round is anticipated to be completed and finished by the end of Q2.
For Circle, this funding round will improve the already commenced strategic growth of the firm. As the market for dollar digital assets and other financial merchandise continues to soar globally, and with the USD coin as one such dollar digital coin, Circle’s transformation is bound to increase.
According to CoinGecko, Circle’s USD Coin with a market capitalization of $50.58 billion presently seats as the 2nd largest stablecoin being led by Tether (USDT). Globally, it is the 5th largest cryptocurrency, also by market valuation.
Stablecoin Regulation Takes Off in The United Kingdom
While Circle in the United States is experiencing this leap for its stablecoin, on the other side of the world, the United Kingdom is setting up structures to regulate and monitor stablecoins for use as a legal tender. There are plans by British regulators to also come up with a unique non-fungible token (NFT) as a way to identify with the trending technology.
The aim is to make the nation a crypto-friendly one. The Economic Secretary to the Treasury in a keynote speech during the Fintech Week 2022 mentioned that stablecoins will be a more productive and confident means of making payments for customers who are not convinced about digital assets.