Circle Attracts Goldman Sachs To The Bitcoin Space

Circle Internet Financial, a bitcoin-based startup, confirmed rumors that it was in the midst of a large fundraising effort this week after the

reported that the company received a generous sum from financial giant

. The news brought a great deal of attention to the cryptocurrency and gave investors a reason to take a second look at Circle now that it had the backing of a major player in the finance space.

Goldman Sachs Takes An Interest

Goldman Sachs announced on Wednesday that it had partnered with China's IDG Capital Partners to lead a $50 million investment into Circle. The funds are expected to be used by Circle executives to further the company's mission— to improve the bitcoin payments system. Circle plans to make peer to peer exchanges faster, easier and more cost effective using bitcoin.

Goldman Sachs' investment marks a growing interest in the technology that powers bitcoin. While investors have been wary of the cryptocurrency itself due to its erratic swings in value, more and more firms have taken an interest in smaller companies that are creating platforms with which to use bitcoin. The idea of sending money across boarders instantly and with a minimal cost has proven to be a unique opportunity for finance firms, who may soon need to compete with small startups like Circle as they gain popularity.