Circle, the social payments app that runs on bitcoin’s blockchain, launched with support from Barclays as part of a new partnership.
Circle was officially granted an e-money license by the U.K. watchdog group, Financial Conduct Authority. This marks a milestone for this digital currency company, which has rapidly been making a name for itself in the FinTech ecosystem in the region.
Circle is a Boston-based startup that has major VC backers, along with big banks like Goldman Sachs and Digital Currency Group as an investment firm backer. The new license allows the company to enable its users to send/receive domestic and international payments.
“Circle’s decision to launch in the U.K. and the firm’s new partnership with Barclays are major milestones. Together they prove our decision to introduce the most progressive, forward-looking regulatory regime is paying off and cements our status as the world’s FinTech capital,” said Harriett Baldwin, economic secretary to the U.K. Treasury.
What’s unique about Circle is that it allows money transfers to be sent alongside a message, which can also include animated messages. Essentially, it’s made sending money similar to sending an email. Circle also allows for cross-currency transfers (pounds to dollars now) without additional fees. And when it launches across the rest of Europe later in 2016, it will offer that service for euros.
“The founding vision for Sean and I was that money should work the way the Internet works,” Circle CEO Jeremy Allaire told Reuters. “This is the thing that I think we’re all learning from the Chinese: that this merging of messaging, media and payments together really makes sense to people.”
As for why Barclays is supporting Circle?
“We support the exploration of positive uses of blockchain that can benefit consumers and society,” said a spokesperson for the bank in a statement to Reuters.