Circle raises $400m, expands partnership with BlackRock

Payments fintech Circle has raised $400m in a funding round that included BlackRock, Fidelity, Marshall Wallace and Fin Capital.

The global internet finance firm and issuer of digital stablecoin USD Coin (USDC) said the round is expected to close in the second quarter, and also shared plans to expand its strategic partnership with BlackRock.

The investment management company will now have a broader strategic partnership with Circle, which will include exploring capital market applications for USDC.

This is in addition to its corporate strategic investment and role as a primary asset manager of USDC cash reserves.

The news follows the UK government's economic secretary to the Treasury John Glen unveiling plans to bring in legislation to embed stablecoins into its payment systems just last week.

Circle’s new funding comes two months after its valuation doubled to $9bn when it agreed to new transaction terms with Concord Acquisition Corp.

Circle also previously raised $440m in a funding round announced in May 2021.

“Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. This funding round will drive the next evolution of Circle’s growth,” Circle co-founder and CEO Jeremy Allaire said.

“It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.”

Allaire described the news as a “huge milestone” on the road to mainstream adoption of digital currency.

He shared that the expanded partnership with BlackRock will allow the company to explore new ways that USDC can be adopted in TradFi capital markets applications.

“The strategic financing and partnership underscores the opportunity for the USDC platform and ecosystem to become a preeminent standard as the world economic system migrates to digital currency and blockchains,” he wrote.

With over $50bn of USDC in circulation, it is one of the fastest-growing digital currencies, and the raise will allow the company to continue to grow alongside the rising demand for dollar digital currency and related financial services.