FinTech news in Circle category

As a 1:1 fully collateralized stablecoin backed by offshore Chinese yuan, CNHC needs approval from the Hong Kong Monetary Authority and is obliged to submit audit reports at the local government’s request, the company told journalist. Circle Ventures, the venture arm of the USDC issuer Circle, has invested in an offshore Chinese yuan-backed stablecoin project, CNHC.

According to Circle’s January attestation report, the firm had about $9.88 billion in cash deposited at regulated banks to back its stablecoin’s value, among other assets. If Circle did have more than a smattering of cash at SVB, concerns could mount that the backing of USDC may no longer be complete and instead be more fractional than is needed for a stablecoin to remain steady.

The startup has raised capital in a pre-product financing round from Coinbase Ventures, Circle Ventures, SV Angel, SALT Fund, P2P, Third King Venture Capital and Motivate Venture Capital. Now, he has raised $5 million for his own startup, Architect, which aims to make trading infrastructure for large crypto investors. A startup like this could meet current market demand from big players for more unified and accessible platforms to connect their crypto services, instead of having a handful of tabs and servers open. The startup is launching pre-product, so its flagship service will have to be seamless and provide an easier user experience to trump other crypto services out there.

In addition to the capital raise, BlackRock has entered a strategic partnership with Circle to be its primary asset manager of USDC cash reserves and explore capital market applications for its stablecoin, among other objectives.

Cryptocurrency company Circle has announced that it has terminated its previous agreement with Concord Acquisition Corp., a publicly traded blank-check company — a SPAC.

This noticeable shift of influence toward ultra-high-net-worth individuals and firms among bitcoin and other crypto circles goes against the very ethos that the Bitcoin white paper was based upon when it described a peer-to-peer electronic cash system.