Circle (Financial Services Company)

What Is Circle ?

Circle is a Boston-based fiscal services company that uses blockchain engineering for its peer-to-peer payments and cryptocurrency -related products. It was started in 2013 by Jeremy Allaire, who previously founded Brightcove, a television platform company, and Sean Neville .

traffic circle started as a consumer peer-to-peer cryptocurrency payments and central chopine, sponsoring the popular cryptocurrency exchange Poloniex after the exchange experienced adversity in 2017, which was later spun out in October 2019.

In 2016 the company stopped offering its cryptocurrency wallet services. In June 2019, it was announced that Circle Pay mobile and relate web apps would be discontinued. In 2020, the company ‘s focus shifted to its stablecoin as “ programmable dollars ” for business use. In 2021, Circle was acquired by Concord Acquisition Corp., a special determination acquisition ship’s company ( SPAC ), in a share valued at $ 4.5 billion. The batch will take the company public in late 2021 under the watch symbol ‘CRCL ‘ .

Key Takeaways

  • Circle is a blockchain-focused financial services and payments company launched in 2013.
  • Originally a consumer-facing P2P payment and cryptocurrency wallet & exchange app, the company has since refocused on commercial blockchain and crypto applications.
  • Circle launched a stablecoin in 2018 known as USD Coin, backed by $1 or asset with equal, fair value.

How Circle Works

Circle ‘s web site states that its mission is to change the global economy. The company ‘s first product was an app called Circle Pay. The app was a bitcoin trade exchange. In September 2015, Circle Pay was granted a BitLicense, New York submit ‘s license for operating bitcoin exchanges .

In May of 2021, the company announced it had raised $ 440 million in finance from institutional and strategic investors. In 2018, Circle had raised $ 110 million in venture capital to create a stablecoin on Ethereum coin backed by U.S. dollars, known as USD Coin ( USDC ) .

The U.K. ‘s Financial Conduct Authority ( FCA ) granted Circle an electronic money license. In December 2016, Circle Pay ‘s concenter shifted to peer-to-peer payments or “ global social payments. ” Circle besides launched an open-source software project in 2017 to promote requital engineering .

The Circle App

Circle ’ mho main merchandise was an app called Circle Pay that enabled clamant and loose money transfers between individuals. The service was similar to Paypal ’ s Venmo in that it could be used for daily transactions, such as splitting meal costs or making rent payments .

The Circle Pay app was popular with Millennials in Europe. According to the party, 90 % of its european customers in 2017 were below 35 years of age, and 60 % were younger than 25 years old. In June 2017, Circle Pay announced the integration of a unblock money remove service between the United States and Europe .

While announcing the launch, Circle founder Allaire said the ship’s company was working towards realizing its vision of no distinction between international and domestic money transfers.

The circle app is no long supported .

Open-Source Blockchain Toolkit

Circle ‘s receptive beginning project is called Centre and is named after the Cent Routing Exchange protocol it uses. Transfers within the app take position using Centre tokens ( CENT ), an Ethereum token. The undertaking enables transfers between consumer digital wallets that support different currencies. It is besides intended to help fiscal services companies to comply with existing regulations, such as Know Your Customer ( KYC ) and Anti-Money Laundering ( AML ), by enabling disclosure .

The project supports transfers in many countries around the earth. For model, a drug user in the U.K. can convert british pounds to Korean acquire and transfer them to a digital wallet exploiter in Korea using the app. Centre presently runs on Ethereum ‘s blockchain but is designed to run on other blockchains as well .

How Does Circle Make Money ?

Circle ‘s products are freely available in app stores, and the caller does not charge fees for transactions or transfers. It makes money through the trade of bitcoin and other cryptocurrencies in nonprescription ( OTC ) markets and at digital exchanges .

In an August 2017 pinch, Allaire said Circle was the second base biggest crypto asset trader in the world. The company trades in bitcoin and ether and is a market maker on all major exchanges. It besides provides OTC liquid services to institutions. In the future, it may launch products that generate tax income .

” We will have future, higher-level products that we amply intend to be revenue-generating, but this first gear basic intersection needs to be release, ” co-founder Sean Neville stated in a 2014 blog post .

Circle besides earns gross from the reserve balances that it holds for its customers. The company invests their clients ‘ balances and pays them interest from those investments but takes a helping of the pace as gross via an pastime rate spread .

Circle ’ randomness Business Strategy

Circle processed $ 1 billion in transactions per calendar month as of 2017, according to a statement from Allaire. It entered China, a massive marketplace for payment apps, starting in 2016. The company ’ mho stress in China is to “ connect chinese consumers to the perch of the world ” by enabling the flow of payments going out or into China. For example, it could more easily facilitate money transplant operations for chinese students studying afield .

Circle ’ s technology of using blockchain-based tokens is similar to that of Ripple, which is another company focused on reducing the price of international money transfers. however, both apps target different markets. Ripple is working with bank institutions to implement its technology .

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