Circle, the company behind the third largest stablecoin USD Coin (USDC) broke a record yesterday. Indeed, it has raised the largest investment in the crypto industry ever from a number of major investors. The company raised a total of $ 440 million, Forbes said.
The company’s stablecoin has made great strides in recent months, gradually stealing some of the tethers (USDT) market share. USDC’s market capitalization was $4.2 billion at the beginning of 2021. The stablecoin has since appreciated by more than 400% and now has a market cap of $22.2 billion. This puts it in 8th place among the largest cryptocurrencies in the market.
However, it is not the market cap that is impressive. The stablecoin processed $615 billion in transactions last year, which is an increase of a whopping 28,000%. These transactions were made by more than 10 million retail customers and 1,000 corporate customers. A well-run business!
A group of both institutional and strategic investors invested $440 million in the company. Investors include Fidelity, Digital Currency Group and cryptocurrency exchange FTX. The investment marks the largest ever in a crypto company.
Forbes notes how fast the crypto market is gaining popularity among traditional investors. It notes that of the 12 largest-ever investments in crypto companies, a whopping five were made in 2021.
Circle is pushing bitcoin (BTC) mining hardware manufacturer Bitmain off the throne. That company raised $422 million in 2018. Number three is BlockFi, which raised $350 million this year.
USD Coin was in the news recently. Visa will use the stablecoin to settle transactions. A huge step for the adoption of the stablecoin.