Lehman Brothers bargainer Bob Diamond is paying for encryption

2022-07-23 0 By

Diamond’s SPAC Concord now values Stablecoin publisher Circle at $9 billion, double its initial valuation.Bob Diamond, Concord’s chairman, made his name on Wall Street after the subprime crisis by boldly buying key assets from Lehman Brothers at bargain prices,At the time, he was president of Barclays, a large British bank.Now he is paying top dollar to try to replicate that success in the digital asset market.His latest dramatic move — Diamond’s SPAC, Concord Acquisition Corp., agreed to double the valuation of Circle, a U.S. staboin issuer — shows how high the stakes are as Wall Street veterans bet on the future of finance.Circle negotiated a New Deal with Concord on Thursday that values the company at $9bn, up from its original agreement in July, when it was valued at $4.5bn.According to a statement announcing the revaluation on Thursday, the new transaction reflects Circle’s improved financial outlook and competitive position — particularly the growth and market share of US dollar coins (USDC).Major player In 2008, Mr Dimon spearheaded the acquisition of some of the key assets of Lehman Brothers, a troubled lender, in the wake of the subprime crisis, which not only impressed Barclays shareholders but also turned the bank into a major player on Wall Street.Mr Diamond resigned in 2012 after Barclays was hit with a huge fine for attempting to manipulate Libor rates.The new Circle deal shows that Diamond is now looking to replicate his success in the digital assets business with Lehman Brothers.”We continue to believe Circle is one of the most interesting, innovative and exciting companies in global financial development, and we believe it will have a historic impact on the global economic system, “Concord Chairman Diamond said in a statement.Circle was co-founded in 2013 by Jeremy Allaire, a technologist who has long seen the disruptive potential of the Internet.In addition to issuing USdcs in partnership with Coinbase crypto exchange, Circle also owns equity crowdfunding platform SeedInvest and once owned crypto exchange Poloniex until it spun it off in October 2019.In 2018, the payments service gained unicorn status after completing a Series E funding round that pushed its valuation to nearly $3 billion.Circle’s new agreement comes at a time when a number of other crypto companies aiming to go public are struggling to gain investor traction, as the broader crypto market falls back from its peak last year.More recently, crypto miners such as Core Scientific and Rhodium Enterprises, which were due to go public in the first half of this year, have faced investor resistance and had to postpone deals due to market volatility.However, Circle’s New Deal shows that there is still interest in crypto companies that will make a mark on the wider crypto ecosystem, and Circle publishing one of the world’s leading staboins certainly fits the bill.Staboins are cryptocurrencies whose value is tied to external assets, such as the US dollar or gold, to stabilize prices.Launched in 2018, USDC was developed with the CENTRE consortium, a Circle affiliate of which Coinbase is also a part.Stablesows are backed by cash and equivalents as well as short-term US Treasury bills and can be exchanged 1:1 for the US dollar.”With [the Fed] dragging their feet on digital dollars, they are leaving a big gap for the private sector to use staboins for issuance,” Mati Greenspan, founder of Quantum Economics, told CoinDesk.”With the support of existing financial institutions, Circle’s USDC coins are now the clear leader in this fast-growing market,” Greenspan added.”Circle has made great strides in transforming the global economic system through the power of digital currencies and the open Internet, “Allaire, co-founder and CHIEF executive of Circle, said in a statement on Thursday.