Circle to acquire Web3 platform Cybavo, bolstering its stablecoin adoption

Sebastian Parker
Sebastian Parker
Last Updated on June 10, 2022

Circle, a peer to peer financial services company, has acquired Cybavo, an infrastructure platform for digital assets. Circle will be able to offer “infrastructure-as-a-service” to firms looking to develop on Web3.

Developers will have the ability to focus on their products and not worry about operations or digital asset security. Circle and CYBAVO plan to promote adoption of USD Coin ( USDC), and Web3 applications, while integrating technology into their core product suite.

Circle also wants to develop and manage CYBAVO’s services and products, and integrate them as a new product pillar. Cybavo, a Taiwanese start up, was formed in 2018. It raised $4million in a seed round in 2017. Circle will provide support and investment for Cybavo’s products and services, as well as research and development.

Paul Fan, Cybavo’s co-founder and CEO, stated that “Circle” and “CYBAVO” share the same operating principles and values. He also said that they believe that Web3 apps will “cross over the chasm” in the coming years and expand into enterprise- and consumer-scale applications.

Circle spoke to Cointelegraph about their venture, which they described as a “strategic purchase.” It was intended to accelerate the adoption of USDC technology and Web3 technologies. They also improved existing product offerings and established a new “Crypto Platform Services” category at Circle.

According to the payments company, its role in the ecosystem was to connect the traditional financial system with Web3 apps.

“We believe that the future will be a more open platform to financial services that seamlessly links these two worlds with more core apps and services built on blockchain and crypto infrastructure.

However, Circle didn’t disclose the terms of its deal with Cointelegraph.

The USDC stablecoin was launched in 2018 and is the second-largest stablecoin behind Tether ( USDT). It has a market cap of $53.8 billion and is the fifth-largest digital assets by value, according to data from CoinGecko.

Similar: These stablecoins are not called TerraUSD, but they are the most stable.

According to Cointelegraph, Circle raised $400 million in an investment round that was co-led American investment firm BlackRock, Fidelity Management and Research and the investment advisory firm Fidelity Management and Research. The round also included the London-based Hedge Fund Marshall Wace and Fin Capital. As the demand for digital currency based on the United States dollar grows, Circle will benefit from the investment round.