In February Circle purchased the cryptocurrency exchange Robinhood, and has now launched a beginners’ cryptocurrency app called Circle Invest that functions very similarly to Robinhood’s recent cryptocurrency functionality. “Invest in crypto even if you’ve never invested in crypto”
“This is investing for all of us. With Circle Invest, it’s easy to buy and sell crypto assets. Think of it as crypto without the cryptic.”
They currently offer seven of the top cryptocurrencies and promise more are on the way: Bitcoin, Bitcoin Cash, Ethereum, Zcash, Monero, Ethereum Classic and Litecoin. With Circle Invest as well as Robinhood, users do not actually possess their coins. Because of this, the trades are instant.
This is in contrast to a platform like Coinbase, where users can make withdrawals. However, Coinbase charges fees and whereas the other two do not, and is not instant. Circle invest also offers an “all the coins in one tap” option. This automatically divides your fiat investment across all of the coins supported. The investment is weighted by market cap.
New Shape of Money
“At Circle, our products are built to leverage blockchain technology so we can connect more people in more places. And that means more access for more of us — and, ultimately, a more inclusive global economy.”
But here the important distinction is that the access to money transfers and payment options does not directly used cryptocurrencies. It was back in 2016 that Circle stopped their Bitcoin payment processing.
However, the company appears to still be bullish on cryptocurrencies with their purchase of Poloniex and plans for expansion of that exchange as well as Circle Invest. In addition, the company raised their minimum BTC trade value on Circle Trade to $500,000 USD or almost 70 BTC.
This is Circle’s OTC global trading desk that moves over $2 Billion monthly. This liquidity is the fuel that allows their other cryptocurrency platforms to function.