Homepage / Technology / Goldman Sachs-backed start-up Circle introducing a crypto version of the US dollar
Leaders of two Koreas hold surprise meeting as Trump revives hopes of summit with North Ireland set to end abortion ban as exit polls signal landslide vote Billionaire entrepreneur Richard Branson says he's 'neck and neck' with Bezos in the space race South Korea relieved about Trump-Kim summit revival efforts Top VC deals: Kroger buys Home Chef, PayPal buys iZettle and Rover raises $155 million Next time you buy a TV at Best Buy, you may be offered health care, too MVP robots won't take football players' jobs, but they may just save their legs The government could save $1 billion by combining its 12,062 data centers — but it's behind plan Elon Musk may actually be making a website to rate journalists for credibility and 'core truth' Bank of America outlines tips investors can use to beat the market Silicon Valley investors explain why they're scared of China YouTube Music is really good, but probably not enough to pull you away from Spotify Trump administration is telling Congress it has an agreement to save China's ZTE: New York Times No recession until late 2020, so keep buying stocks, Credit Suisse says Moody's warns of 'particularly large' wave of junk bond defaults ahead Cryptocurrency stunt to climb Mount Everest reportedly turns deadly Chinese police take down gang of inventive online reputation cleaners Italy's Conte struggles to form team; markets tumble Cramer: Foot Locker's stellar earnings show the 'mall is still not dead' yet Roku shares jump after short-seller reverses call, says he doesn't want to bet against cord-cutting Wyoming's plan to diversify its economy from fossil fuels … to blockchain Facebook, Google face complaints worth $8 billion over alleged breach of new EU data law Apple's self-driving partnership is the next phase of 'Apple as a service,' Gene Munster says Consumers expect smaller gains in income than a year ago, May sentiment survey finds Herbalife shares plunge after Carl Icahn said he is lowering his stake in the company South Africa's ailing state-owned firms set to invest billions in dramatic reform program Why you're suddenly getting lots of emails from sites you haven't visited in years 'Fortnite': This is how a free video game might make $3.5 billion White House official: Trump could take a harder line on trade with China now that the Kim Jong Un summit is off Stocks making the biggest moves premarket: FL, HIBB, BKE, GPS, DECK, ADSK, ROST, AZN & more Apple blocks Steam's plan to extend its video games to iPhones Foot Locker shares are jumping 15% after a blowout earnings report PayPal upgraded by Stifel because of its addition of new financial services Samsonite slides for a 2nd day after a short-seller attack, but some analysts are unfazed US Commerce Secretary Wilbur Ross to visit China for trade talks in early June A specialty retailer up 118% in one year could have more room to run after earnings Gold is back: The rise in geopolitical tensions boosts precious metal prices The 'Meghan Markle Effect' is boosting gold jewelry sales US media websites down in Europe after a huge data law shakeup Tencent's WeChat drops 'sugar daddy' dating website Autodesk forecasts second-quarter profit below estimates Turkey's leadership scrambles to regain investor confidence in its monetary policy Italy's Enel accuses Spain's Iberdrola of 'aggressive' tactics in Brazilian power struggle Sanctioned tycoon Deripaska resigns as director of his firm Rusal The battle for the biggest prize in soccer, worth $370 million, is taking place this weekend One of the biggest names in advertising thinks you're going to get paid for sharing your data European markets seen higher after Trump scraps US-North Korea summit US jury awards Apple $539 million in Samsung patent retrial How Europe’s new privacy law called GDPR is creating big business opportunities Trump can take some lessons from the failed summit with North Korea, says a former US ambassador A Trump-Kim meeting could still take place down the road China's box office recently beat the US, and is now on the cusp of a 'new growth cycle' Steve Cohen's Point72 is bullish on Asia — and they like these sectors The crackdown on cryptocurrencies is a good thing, say traders Read the full statement from South Korean President Moon Jae In here Asian stocks poised to slide after Trump cancels North Korea summit Cramer Remix: Don’t let this buying opportunity pass again Indigo Agriculture CEO wants to change economics for farmers with a 'revolution in agriculture' The phone company founded by Android creator Andy Rubin is reportedly for sale US bill would force tech companies to disclose foreign software probes Nutanix falls on a wider-than-expected quarterly loss Google employees are spending heavily to elect Democrats in California and to flip the House How to send your Twitter feed back 10 years and see early, silly tweets Facebook shows once again that it does not understand or value journalism Whip yourself into shape by using this Apple Watch feature to compete against friends and family Trump and Europe are entering a 'game of chicken' over Iran nuclear deal sanctions New Boeing 777 will have folding wings Facebook and Twitter announce stricter political ad guidelines ahead of midterms Here is the federal labor complaint the United Auto Workers just filed against Tesla Elon Musk has a history of wild ideas — some of them have worked out Netflix passes Disney and is now biggest pure media company in the world by market value Zuckerberg says Facebook has 'always shared' the values of Europe's new data law Best Buy’s big sell-off could soon be a buying opportunity, says market watcher Iran's Supreme Leader just made 5 tough demands for Europe to save the nuclear deal Ray Dalio said last year gold was good protection because of Trump and North Korea 'playing chicken' Classic dividend stocks are tanking, but think before you make the mistake of selling Watch Facebook's Mark Zuckerberg speak at Viva Tech 2018 as concerns over data protection heighten North Korea summit cancellation part of 'downside risks' for the economy, Fed's Bostic says Spain economy minister says he's not concerned about Italian bond market contagion Art Cashin: Stock drop reflects mistaken assumption Trump would do everything to make North Korea summit work Uber ‘moving in the right direction’ and will hopefully keep London license, exec says Labour laws in 104 countries reserve some jobs for men only Dear oil helps some emerging economies and harms others Tailor shops are a thriving pocket of enterprise in Pyongyang Why it makes sense to invest in Treasury bonds Why even bears about the government-bond market can find merit in Treasuries Who will be the main loser from Europe’s new data-privacy law? What is an audit for? As Tesla’s share price falls, it becomes an inviting takeover target How kidnapping insurance keeps a lid on ransom inflation CEO says Crowdstrike's security platform could someday attract Amazon, Google Cisco CEO Chuck Robbins speaks at VivaTech 2018 amid heightened cybersecurity concerns South Korean stocks ETF tumbles after Trump cancels meeting with North Korea's Kim Jong Un Cramer: Trump's investigation into auto imports in the name of national security is a 'stretch' Existing home sales drop 2.5% in April Gold jumps after Trump cancels North Korea summit as global investors seek safety Uber's self-driving SUV saw pedestrian in fatal accident but didn't brake, officials say Trump cancels Singapore nuclear summit with North Korean leader Kim Jong Un JP Morgan: Charts show new market highs are coming soon, led by bank stocks GE doesn't plan to cut dividend again, sources say

Technology

Goldman Sachs-backed start-up Circle introducing a crypto version of the US dollar

Fintech company Circle is looking make a better, faster, digital version of the U.S. dollar.

The Goldman Sachs-backed start-up announced a new cryptocurrency pegged to the dollar, and a $110 million investment round led by profitable crypto mining company Bitmain, which brings Circle’s value near $3 billion, the company announced Tuesday.

“It unlocks an incredible amount of power for the dollar,” said Jeremy Allaire, CEO of Circle. “It’s a basically dollar that operates on blockchain.”

Circle is one of the most well-funded blockchain startups, with investors including Goldman Sachs Group and Baidu. The fintech company operates its peer-to-peer payment network using blockchain, the technology that underpins bitcoin.

Circle’s new USD Coin is meant to solve a key problem in digital currencies’ use case: Volatility.

Critics including Stan Druckenmiller have said cryptocurrencies can’t be used as a means of payment because their value changes so often, and so rapidly. Bitcoin for example has been marked by volatility in the past 12 months and has dropped by more than 50 percent since its high near $20,000 in December, according to CoinDesk.

Circle customers will be required to hold $1 for every USD Coin, keeping the price stable. Other companies like Tether, and Basis also have offered “stable coins” with a value tied to the U.S. dollar. But Allaire said there’s a need for “compliant alternative” to Tether, which has a $2.2 billion market cap, according to CoinMarketCap.com.

“When I look at the convergence of traditional finance and the crypto space, it’s begging for that,” Allaire said to a room full of journalists. “There are a number of banks who are excited about it and will support it.”

Once U.S. dollars are transferred to Circle’s USD Coins, Allaire said they can be moved within seconds thanks to blockchain technology. He said they will eventually add tokens for the euro and pound but it’s less likely they’ll immediately look to peg most Asian currencies because of existing competition in that arena.

The framework for the coin is what’s called “open sourced,” meaning multiple developers can work on the project and help its development. The USD Coin project is being developed by an organization called CENTRE, which will provide independent oversight of Circle’s offering.

Bitmain, best-known as a crypto “mining” company, is leading a $110 million strategic investment in Circle, which the company said brings its valuation close to $3 billion. The funding round also includes existing investors like Breyer Capital, Tusk Ventures, IDG Capital, Pantera and Blockchain Capital.

Bitcoin mining requires use of special software to solve math problems in exchange for a certain number of bitcoins. Bitmain dominates that mining industry and likely made as much as chipmaker Nvidia did last year. Bernstein analysts estimate that Bitmain made $3 billion to $4 billion in operating profit in 2017.

The USD Coin is being run on a blockchain known as ethereum, but Allaire said they’re open minded about other platforms if any come to market that can outperform.

“Ethereum is the best bet but it’s not necessary the end game,” he said. “For now it’s specifically on Ethereum.”

Circle is one of the leaders in over-the-counter bitcoin trading markets, and acquired cryptocurrency exchange Poloniex in February.

Source: Tech CNBC
Goldman Sachs-backed start-up Circle introducing a crypto version of the US dollar

Comments are closed.