Circle raised 110 million to issue a dollar-backed token

Cryptocurrency company Circle has raised funds to issue a dollar-backed USD-C token that will use the Ethereum network.

The investors were Bitmain Technologies, Blockchain Capital, Pantera, Digital Currency Group and other venture firms. A similar token already exists on the market, it is called USDT and uses the bitcoin network. The company that issued it, Tether Limited, assures that each USDT token is backed by a real reserve in the accounts. 

Circle is also launching the Center project, based on blockchain technology, which will focus on connecting different digital wallets and will manage the USD-C token protocol.

The developers argue that a cryptocurrency pegged to fiat currency can add value to the blockchain ecosystem. “It's hard to use a currency like bitcoin if the volatility is so high. Our version of the currency will be more reliable,” explains Circle founder and CEO Jeremy Allair. 

Circle is not afraid of competition from other asset-backed cryptocurrencies on the market, saying such currencies lack financial and operational transparency, operate in unregulated jurisdictions, partner with unknown banks and auditors, and are built as closed loops ecosystems with hidden technologies.

“We see the future of the global economy as open, shared, inclusive, distributed and powerful—not for a select few, but for all who join,” says its founder.

According to https://news.bitcoin.com