Circle is a financial technology firm that offers cryptocurrency-powered payment solutions for businesses. Its core product is a stablecoin, USD Coin (USDC), which is pegged to the dollar and currently ranks ninth in market value.
The company was founded in 2013, and it has a strong management team behind it, led by Jeremy Allaire. Allaire has been a seasoned entrepreneur, having previously founded software company Allaire Corporation and online video platform Brightcove.
Why Circle?
Circle is a payment services company that uses blockchain, the technology behind bitcoin and other cryptos, to facilitate payments for businesses. It also has a platform called SeedInvest to raise capital for startups.
Founded in 2013, Circle is one of the oldest cryptocurrency companies in the market. It has dabbled in Bitcoin and non-crypto payment systems at different times, but now it is focusing solely on USDC.
In addition to this, Circle is attempting to become a full-reserve national commercial bank, putting it in a position to link traditional banking services with the blockchain. This could create a much more efficient and safer financial system, CEO Allaire says.
In order to make this possible, the company has raised a substantial amount of capital through an IPO with Concord Acquisition Corp. Its valuation is $4.5 billion, and it plans to raise another $1 billion in funding through this round.
Getting Started
Circle offers an easy way to invest in crypto, even if you’re new to the industry. Simply deposit money in your bank account, and instantly buy coins when the market is right.
Jeremy Allaire, co-founder and CEO of Circle, says crypto is poised to transform payments. That’s because it’s easier to process cross-border payments with crypto than with fiat currencies, he notes.
One of the ways Circle wants to do that is through USD Coin (USDC), a stablecoin it launched in 2018. It’s a protocol for representing a fiat currency dollar and settling that transaction on the public internet.
USDC is already used by companies that deal with crypto-only tokens, allowing them to use it instead of fiat dollars for their business transactions. Eventually, Allaire says Circle will make it available for other currencies, as well. That would enable USDC to become a mainstream payment network for everyone. That’s a big deal for a stablecoin.
Trading
Circle Invest is a commission-free app for making and trading crypto investments. It lets you buy and sell 7 cryptocurrencies — Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Ethereum Classic, and USDC — from within one app.
The app uses a “buy the market” feature that automatically spreads your investment across the coins in the best price range. This makes it incredibly easy to get started and learn about cryptocurrencies.
It also allows you to move your money around in currencies and countries — a service that many other cryptocurrency companies do not offer.
The company’s over-the-counter crypto desk moves over $2 billion each month. It also owns Poloniex, a leading crypto exchange.
Investing
Circle Invest is a mobile app that lets you buy, sell and trade crypto assets. It also runs an over-the-counter (OTC) trading desk for large investors and provides services like Circle Pay, which enables anyone to send money instantly.
The company is also a member of Centre, which is building a standards organization for stablecoins. In June, it donated the USDC smart contract and other intellectual property to Centre in exchange for $2.0 million.
Stablecoins are a growing part of the digital currency landscape, but they have yet to be fully regulated by government agencies. If federal regulators do decide to implement new rules, it could impact Circle’s ability to grow and remain profitable.
