Circle, the company behind USD Coin ($USD.X), has secured $400 million in funding from financial giants like BlackRock, Fidelity Management and Research, Marshall Wace, and Fin Capital. The raise underscores healthy interest from traditional finance companies in the nascent DeFi and crypto space.
In its announcement, BlackRock, the world’s largest asset manager, stated that it “has entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USDC.”
The stablecoin issuer plans to use the funding to boost its growth strategy as the demand for the digital currency will multiply in the coming years. The round is expected to close in the second quarter.
“This is a milestone moment for Circle and part of the coming of age of crypto,” CEO and co-founder Jeremy Allaire said in the statement.
The latest funding round comes weeks after Circle announced its decision to delay its SPAC merger. That merger, announced in July 2021, was expected to close in Q4 2021. However, Circle was dissatisfied with the original deal, which valued the company at $4.5 billion, and that’s why it terminated its previous agreement with Concord Acquisition Corp., a publicly-traded SPAC. Circle announced in February that its valuation has doubled to $9 billion. The new SPAC merger may close by the end of this year or at the beginning of 2023.
Besides raising capital, BlackRock and Circle have agreed to form a strategic partnership. BlackRock will be Circle’s primary asset manager for USDC cash reserves and explore capital market applications for its stablecoin, among other objectives.
$USD.X, the second-largest stablecoin, closed on a positive note today. With a trading volume of $4 billion in the past 24 hours, it currently holds a market capitalization of $50.83 billion.