Financial Giant BlackRock Becomes 'Strategic Investor' in USDC Issuer Circle

cryptonews.com:

The global fintech firm Circle has entered into an agreement for a new USD 400m funding round with participation from several major players from traditional finance, while making asset management giant BlackRock, Inc. a “strategic investor” in the company.

The funding round, announced by Circle on Tuesday, saw participation from BlackRock, Fidelity Management and Research, London-based hedge fund Marshall Wace LLP, and the FinTech-focused investment firm Fin Capital.

The funding round is expected to close in the second quarter of this year, the announcement said.

Circle is a global fintech firm focused on enabling payments, commerce, and other financial applications using digital currencies. The firm is the issuer of the second-most popular stablecoin, USD coin (USDC).

According to the announcement, BlackRock has also entered into a broad strategic partnership with Circle that goes beyond its existing role as the primary asset manager of USDC cash reserves.

The new role will include “exploring capital market applications for USDC,” Circle’s announcement said.

"Dollar digital currencies like USDC are fueling a global economic transformation,” said Jeremy Allaire, co-founder and CEO of Circle. He added that it is "particularly gratifying to add BlackRock as a strategic investor in the company,” and said that Circle looks forward to developing the new partnership.

Commenting on Twitter shortly after, Allaire said the Circle and BlackRock together will explore “new ways that USDC can be adopted in TradFi capital markets applications.”

“Through this partnership, I've gotten a chance to get to know the executive leadership at BlackRock, and feel that the whole team is focused on the ways that frictionless value exchange can increase