Circle, a peer-to-peer financial services company, has agreed to buy Cybavo, a platform for digital asset infrastructure in order to further promote the adoption of USD Coin.
Developers won’t have to worry about digital asset protection, operations, or blockchain infrastructure administration while working on their projects.
Circle and CYBAVO seek to boost the adoption of USD Coin (USDC) and Web3 applications while extensively integrating technology into their core product portfolio, according to a press statement issued on Friday.
Circle also intends to develop and run CYBAVO’s products and services while incorporating them into Circle’s new product pillar. Cybavo is a Taiwanese start-up that was founded in 2018 and recently raised $4 million in a seed round. Cybavo’s research and development will be supported by Circle, as well as its goods and services.
“Circle and CYBAVO share similar operating principles and objectives,” stated Paul Fan, co-founder, and CEO of Cybavo. “We are aligned in the idea that the market for Web3 apps will ‘cross the chasm’ over the next few years, developing into large consumer and enterprise-scale applications.”
Circle spoke about the deal, which they described as a “strategic acquisition” aimed at accelerating the adoption of USDC and Web3 technologies while also strengthening existing product offerings and developing a new “Crypto Platform Services” category at Circle.
The payments company’s function in the ecosystem, according to the company, has been to connect the old financial system with Web3 apps, noting that:
“We believe the future is a more open platform for financial services that seamlessly connects these two worlds, with more core applications and services built on crypto and blockchain infrastructure.”
According to CoinGecko, the USDC stablecoin was launched in 2018 and is the second-largest stablecoin after Tether (USDT), with a market capitalization of roughly $53.8 billion and the fifth-largest digital asset by value.
Circle just raised $400 million in a funding round led by American investment giant BlackRock, investment advisory firm Fidelity Management and Research, and London-based hedge fund Marshall Wace and Fin Capital. As demand for the digital currency based on the US dollar develops, the financing round will aid Circle’s expansion.
