Bitmain has announced its partnership with cryptocurrency trading firm Circle and immediately gave $110 million in funding for the company. Other prominent venture capital firms like Breyer Capital, General Catalyst, and Accel also participated in the funding round, driving the value of the company from Boston to impressive $3 billion.
Bitmain will join forces with Circle to develop a “stablecoin,” a digital asset that is pegged to a stable asset. The end goal of Bitmain is to have many different stable tokens, all correspondingly backed by different fiat currencies. The first stable token will be called Circle USD Coin, (USDC). It is claimed that the coin is backed one-to-one by the U.S. dollar. The fiat money will be kept in an auditable bank account available for the platform’s users.
The token of the system utilizes Ethereum’s ERC20 standard and is designed according to CENTRE guidelines, which is an organization created to assist the development of fiat-backed tokens.
According to Circle, a price-stable token is an absolute requirement for mainstream adoption of crypto technologies.