Circle, a peer-to-peer financial services company, has agreed to acquire Cybavo, a digital asset infrastructure platform. The deal will allow Circle to offer “infrastructure as a service” to companies that want to build on Web 3.0.
Developers will be able to work on their products without having to worry about the security of digital assets, operations, or management of the blockchain infrastructure. According to Friday’s press release, Circle and CYBAVO intend to further promote the adoption of USD Coin (USDC) and Web 3.0 applications, while integrating the technology deeply into their core product suite.
Circle signed an agreement to acquire @cybavo! Once the deal closes, Circle plans to integrate CYBAVO’s non-custodial digital asset customer solution with Circle Products and expand enterprise and developer services. https://t.co/Kh35nA2tVN
— Circle (@circlepay) June 10, 2022
In addition, Circle wants to develop and operate CYBAVO’s products and services, while integrating them as a new product pillar for Circle. Cybavo is a Taiwanese start-up formed in 2018 that raised $4 million in a seed funding round last year. Circle will invest in Cybavo’s research and development, as well as provide support for its products and services.
Paul Fan, co-founder and CEO of Cybavo, has stated that “Circle and CYBAVO share similar operating principles and values and we are aligned in the belief that the Web 3.0 application market will ‘cross the abyss’ in the coming years, expanding into mainstream consumer and enterprise-scale applications.”
Cointelegraph spoke to Circle about the acquisition, which they called “strategic acquisition”, intended to accelerate the adoption of USDC and Web 3.0 technologies, while enhancing existing product offerings and establishing a new category of “cryptocurrency platform services” in Circle.
According to the payments company, its role in the ecosystem has been to link the traditional financial system with Web 3.0 applications, adding that:
“We believe the future is a more open platform for financial services that seamlessly connects these two worlds, with more basic applications and services built on cryptocurrency and blockchain infrastructure.”
However, Circle did not disclose the terms of the deal with Cointelegraph.
Launched in 2018, the stablecoin USDC is the second largest stablecoin after Tether (USDT), with a market cap of about $53.8 billion, and the fifth largest digital asset by value, according to data from CoinGecko.
As Cointelegraph reports, Circle recently raised $400 million in a funding round co-led by US investment firm BlackRock, investment advisory firm Fidelity Management and Research, and London-based hedge fund Marshall Wace and Fin Capital. The investment round will help Circle further its development as demand for the US dollar-based digital currency grows.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.