Circle Nabs $50 Million from Goldman Sachs, IDG
May 4, 2015
With its participation in a $50 million funding round, Goldman Sachs became the first major U.S. bank with a significant stake in a Bitcoin company. Goldman, along with IDG Capital Partners, led the round, investing in Circle, a technology company developing ways to easily store, convert, send and receive digital currency. The investment bank’s involvement in the company will open doors that had been closed to it before, said Jeremy Allaire, CEO of Boston-based Circle.
“Our new strategic investors bring unique, powerful capabilities and capital that will help us continue building a new kind of global consumer finance company, one based on open platforms, open source software, and ubiquitous mobile devices,” he said.
In a blog post, in addition to announcing the funding, the company also said it is giving customers the ability to hold, send and receive funds in U.S. dollars as well as bitcoin and other digital currencies. They can make and receive bitcoin transactions and Circle will instantly convert the digital currency into dollars without the customer ever holding bitcoin. Those who wish to hold bitcoin as an asset can continue to do so, Allaire said.