Today stablecoin and payments firm Circle announced it has agreed to acquire Taiwanese web3 infrastructure startup CYBAVO. The blockchain infrastructure firm has several web3 product offerings that could be of interest to Circle.
These include CYBAVO Vault, an institutional digital asset custody solution that uses multi parti computation (MPC) and Cashflow Manager. The latter enables a corporate to make bulk deposits and withdrawals from millions of addresses. In combination, these solutions work for various applications, from cryptocurrency exchanges to web3 games.
Circle says it plans to incorporate CYBAVO’s solutions as a new product pillar for the company.
Jeremy Allaire, Circle CEO said CYBAVO “will help Circle create new opportunities for enterprise and developer services while also providing compelling enhancements to our Circle Account and Circle API capabilities for an improved customer experience, helping to grow adoption of USDC.”
CYBAVO has only raised a $4 million pre-seed funding round to date. Meanwhile, Circle has raised more than $1 billion, including $840 million in the last 13 months. In April, it announced its latest $400 million funding round, including BlackRock, which plans to explore capital market applications for USDC.
In February, Circle announced a renegotiated SPAC deal that values the company at $9 billion. The transaction is targeting a December completion date. Concord Acquisition Corp, the SPAC vehicle, has a current stock price of $9.95, slightly below the $10 issuance price.
Meanwhile, the market capitalization of the USDC stablecoin is just shy of $54 billion.