Circle Completes Purchase of Digital Asset Firm CYBAVO, ADDX Sells Stake

CYBAVO, a Taiwan-based “infrastructure-as-a-service platform” enabling digital asset custody tech and security services to firms like cryptocurrency exchanges, NFT marketplaces, cryptocurrency wallet providers, and Fintech service providers, has been acquired by Circle. The purchase was completed during Q3 2022 but was previously announced this past June.

Circle is a digital asset firm that is the issuer of dollar-based stablecoin USDC.

As part of the deal, private digital securities exchange ADDX has sold its ownership stake, which it acquired during a pre-Series A round in CYBAVO. ADDX did not disclose its ownership but said it held a significant stake. Circle acquired CYBAVO for $190 million.

When the deal was first announced, Circle CEO Jeremy Allaire called CYBAVO “impressive,” having built a formidable platform for digital assets. Allaire stated at that time:

“Together with CYBAVO, we hope to advance the adoption of USDC and Web3 applications while deeply integrating our core product offerings. We will also continue to invest in, build and operate CYBAVO’s products and services and incorporate them as a new product pillar for Circle.

CYBAVO co-founders Paul Fan and Tim Hsu are veteran leaders in fundamental crypto and security technology, and have been at the forefront of security technology innovation for decades. They had a vision for a future world where more and more core applications and services would be built on crypto and blockchain infrastructure. They correctly saw that the fundamental operations and infrastructure needed to build robust and highly secure applications on crypto required a completely different kind of platform infrastructure, and they set out to create it.”

Allaire predicts that in the coming years, Web3 apps will expand into major consumer and enterprise-scale applications, “bringing the power of the global crypto economy to everyone, everywhere.”

CYBAVO reports that its solution has been used to secure more than 4 million transactions worth over USD $35 billion

Danny Toe, Group CEO of ADDX, commented on the sale of its shares:

“ADDX was an early CYBAVO shareholder, and our belief in the company’s mission and its management team has deepened over time. CYBAVO and ADDX each bring significant value to the ecosystem for blockchain-based financial services, helping companies and market players access the benefits of digital assets in a secure, high-trust environment. This sale to Circle vindicates our assessment that CYBAVO was a valuable startup that had assembled a skilled and experienced team to solve a real problem for customers. With the integration of CYBAVO into Circle, the business that CYBAVO has built is now positioned to make a greater impact globally.”

Circle has a mission of raising global economic prosperity by leveraging the frictionless exchange of value and providing services for businesses and financial institutions globally to take advantage of the shift to a digital asset and blockchain-powered global financial system. Circle is in the process of becoming a publicly traded company via a SPAC deal that is expected to complete in December 2022.

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