Key Takeaways
- The acquisition allows Circle to provide “infrastructure as a service platform” for firms wanting to develop on Web3.
- Circle and CYBAVO intend to further promote the adoption of USDC stablecoin and Web3 applications while also integrating technology deeply into their core product suite.
Financial Tech Firm Circle announced the acquisition of CYBAVO-a leading crypto technology company. Circle, the issuer of the USDC stablecoin with this acquisition, hopes to advance the adoption of USDC and Web3 applications while deeply integrating its core product offerings, according to the official statement.
As part of the acquisition, Circle wants to focus on investing in, building, and operating CYBAVO’s products and services while incorporating them as a new product pillar for Circle. Circle states that its main role in the ecosystem has been to link the traditional finance system with Web3 apps, and the future is an open platform for financial services that seamlessly connects these two worlds, with more core apps/services built on crypto and blockchain infrastructure.
With this acquisition, Circle intends to offer “infrastructure as a service” for firms wanting to develop on Web 3. With the ‘infrastructure as a service’ platform, Circle claims that developers and businesses can focus on building apps and services that easily and securely tap dozens of different blockchains and protocols while leveraging the powerful custody, security, blockchain node management, smart contract integration layer and client SDKs of CYBAVO to deliver great customer experiences.
Commenting on the acquisition deal, Paul Fan, co-founder, and CEO at Cybavo, stated that Circle and CYBAVO share similar operating principles and values. He added that the companies are also aligned in the belief that the market for Web3 apps will cross the chasm over the next few years, expanding into consumer and enterprise-scale applications.
CYBAVO is a Taiwanese crypto tech firm founded in 2018, offering core crypto security, custody, operations, and blockchain infrastructure platform services. In August 2021, the company raised $4 million in a seed round led by venture capital firm 500 Startups.
Circle’s USDC stablecoin is the second-largest stablecoin and the fifth-largest digital asset by value, with a market capitalization of approximately $53.8 billion. The payments firm also raised an astounding $400 million in a funding round led by BlackRock (BLK) and Fidelity.
