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Exclusive: Bitcoin company Circle raising new cash

April 27, 2015, 3:37 PM UTC
Jeremy Allaire
Jeremy Allaire, Founder and CEO of Circle Internet Financial, a Boston-based digital currency company, speaks at the Inside Bitcoins conference and trade show, Monday, April 7, 2014 in New York. Bitcoin users exchange cash for digital money using online exchanges, then store it in a computer program that serves as a wallet. The program can transfer payments directly to merchants or individuals around the world, eliminating transaction fees and the need for bank or credit card information. (AP Photo/Mark Lennihan)
Photograph by Mark Lennihan — AP

Circle Financial, the bitcoin wallet startup led by Brightcove (BCOV) founder Jeremy Allaire, is in the midst of raising around $40 million at a pre-money valuation of approximately $200 million, Fortune has learned from multiple sources.

Both venture capital and Wall Street firms are expected to participate.

Here is how Circle describes itself, via its website:

Circle is building a suite of consumer products aimed at enabling greater ease-of-use in online and in-person payments, enhanced security and privacy for consumers, and the convenience of free, instant, global digital money transfers.

The Boston-based company previously raised $26 million in VC funding from firms like Accel Partners, Breyer Capital, Bitcoin Opportunity Fund, General Catalyst, Oak Investment Partners and Pantera Capital.

Its board of directors includes Michelle Burns, who also is a director with Goldman Sachs (GS). Recently departed from the board is Ifty Ahmed, a partner (now on leave) with Oak Investment Partners who was recently charged with insider trading.

A Circle spokeswoman declined to comment, but did suggest that some company news would be forthcoming later this week. It is unclear if the financing would be part of it.

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