Circle has successfully raised $222 million in a presale for its ARC token, which is part of its new Arc blockchain network, achieving a valuation of $3 billion. This significant funding round has attracted investments from prominent financial institutions and crypto firms, including BlackRock, Apollo Funds, and a16z crypto.
The fundraising represents Circle’s strategic move to expand its operations beyond its well-known USDC stablecoin, aiming to establish a stronger foothold in the blockchain infrastructure for institutional finance. The company released the Arc whitepaper concurrently, describing ARC as a “native coordination asset” intended to facilitate governance, enhance validator security, and manage network operations.
Arc, which began its testing phase in October, is designed specifically for stablecoin-centric capital markets and regulated financial activities. Its functionalities will encompass tokenized assets, cross-border settlements, and on-chain financial operations. Unlike USDC, which serves as a dollar-pegged payment mechanism, ARC is poised to play a role similar to ether on Ethereum or SOL on Solana, focusing on coordinating the economic and security framework of the network.
Circle has not yet responded to inquiries from CoinDesk regarding this fundraising initiative. Sources familiar with the situation indicated to Bloomberg that the fundraising effort is expected to conclude in the coming weeks, with the final amount potentially subject to change.
In related news, Digital Asset Holdings, the creator of the Canton Network blockchain, is reportedly seeking around $300 million at a valuation of approximately $2 billion, with interest from a16z crypto among other investors. This funding round, advised by investment bank FT Partners, follows a previous strategic funding effort estimated at $50 million.
Circle's recent $222 million fundraising for the ARC token marks a significant step in its expansion into blockchain infrastructure for institutional finance. The new Arc blockchain aims to facilitate various financial activities while differentiating itself from the existing USDC stablecoin.
Source: CNBC