Blackrock increases stake in crypto-friendly bank Silvergate

Blackrock to invest in crypto firm Circle Internet Financial issuer of USDC

Blackrock, the world’s largest asset manager with over $10 trillion under AUM, plans to invest in the crypto firm Circle. The latest funding round organized by the company has also attracted other investment companies like Fidelity, Fin Capital, and Marshall Wace. This shows the huge potential that investment firms see in investing in crypto companies.

Blackrock to invest in crypto firm Circle

For those who are not aware, Circle is a large company and is also the issuer of the 2nd largest stablecoin in the market, USDC. The firm has entered into a $400M agreement with multiple investment companies, including Blackrock. Alongside that, Blackrock has also partnered strategically with the company to help them explore the market applications of USD. While the funds they are raising will be cash reserves for the stablecoin.

Blackrock to invest in crypto firm Circle Internet Financial
Circle is the issuer of USDC.

The CEO of Circle, Jeremy Allaire, said that Digital dollar currencies like USDC are transforming the global economy, and Circle is sitting in the midst of that change. While they are currently the 2nd largest stablecoin, we might soon see it go head to head with Tether (USDT). The reason behind this is Blackrock’s backing. They will be managing the reserves that back USDC and also help explore ways it can be adopted in capital market applications.

About Blackrock

BlackRock, Inc. is an American international investment management firm from New York. It was founded in 1988 as a risk management and fixed income institutional asset manager. Since then, the firm has grown to become the world’s largest asset manager, with US$10 trillion in assets under management as of January 2022. BlackRock works on a worldwide scale, with 70 locations in 30 countries and clients in 100.

The firm has attempted to establish itself as an industry leader on environmental, social, and corporate governance issues (ESG). The corporation has been under fire for contributing to climate change and maintaining tight relations with the Federal Reserve System. It was also accused of engaging in anti-competitive activities and making enormous investments in China.

How do you think Blackrock’s investment will influence the future of the crypto firm Circle? And do you think it will help USDC become number 1 in the stablecoin space? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Coinbase accused of serious insider trading after the recent token listing announcement.