The company Circle has received from Bitmain $110 million for the creation of a competitor Tether

The developer of the crypto products company Circle Internet Financial has received $ 110 million in financial round, organized by manufacturer Bitmain mining equipment.

The company has teamed up to work on a joint project to create a token, provided the us dollar. It will be the closest competitor Tether project, supported by the Bitfinex team (tokens USDT and EURT).

The investment round raised Circle estimated value to 3 billion dollars, more than six times higher than the valuation of the company in 2016. In partnership with Bitmain Circle plans to develop and produce based on Fiat currency, a token or Coin Stable (stablein, stable coin), aimed at addressing the problems of instability of the courses cryptocurrency. The start of the project, called Circle USD Coin or USDC, planned for the summer.

USDC will be a token ERC-20, based on Ethereum linked to the U.S. dollar. Supporters of the project claim that the new coin will have the many advantages inherent in cryptocurrencies, in the absence of volatility risk. The head of the Circle Allair Jeremy (Jeremy Allaire) said that the new token would have the transparency, adding:

«This is a version of Fiat currency, which can move around the world at Internet speed, with much less cost and high level of security. This is a huge improvement of the way of functioning of Fiat money for consumers and companies wishing to obtain digital payments in the form of tokens».

The company Circle, which counts 7 million users, is going to integrate USDC in its payment application Circle Pay and on the OTC platform Trade Circle. In addition, the company plans to offer USDC at its cryptocurrency exchange Poloniex. Co-founder of the company Sean Neville (Sean Gallagher) said that the Circle has not yet decided whether to charge a fee from traders using USDC, because at the moment the main task is to increase the circulation of the token.

Provided with Fiat stabilini similar to the USDC, represent the simplest form of the introduction of stable coins, because they function much the same way as conventional money. Each token equal to the amount of Fiat currency that is stored by the Central Trustee. The owners of the tokens can always sell your coins at a stable exchange rate, expressed in Fiat.

Overall, stabilini aimed at maintaining the inherent Vietnam currencies relative stability of prices and maintaining the main benefits of cryptocurrency, such as decentralization and security. In order for decentralized stabilini worked should also be a system able to provide reliable exchange rate between stabilium and attached to it an asset, instead of relying on third-party institutions that can be manipulated.

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