The startup said it would create a new cryptocurrency pegged to the price of the US dollar, enabling businesses and consumers to transfer value efficiently, according to Reuters. Moreover, each token, called Circle USD Coin (USDC), will be backed by reserves of US dollars, Circle continued for the online publication. The effort is set to begin in the 2018 summer.
The new coin will be issued initially by the startup and run on a network managed by Centre, a wholly owned subsidiary of Circle. In conjunction with its investment, Bitmain will be involved with Centre and help launch coins linked to other fiat currencies, or legal tender. Bitmain is a large cryptocurrency mining company and an important manufacturer of the hardware needed to mine.
Circle operates an app-based peer-to-peer payment network using blockchain, and is considered a large player in the over-the-counter market for Bitcoin trading. It recently acquired cryptocurrency exchange Poloniex.
Existing Circle investors including Breyer Capital, General Catalyst and Accel also joined the round.
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