Circle Advances Towards US IPO With Confidential Filing

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Circle Internet Financial, known as the issuer of the USDC stablecoin, has confidentially filed for an initial public offering (IPO) in the United States, as per an exclusive Reuters report, signaling its intention to become a publicly-traded company. This move marks a pivotal step in Circle’s journey, reflecting the growing interface between traditional financial markets and the evolving digital currency landscape.

Circle Aims To Go Public

Circle, headquartered in Boston, is at the forefront of stablecoin management, particularly with USDC, a digital currency pegged to the US dollar. The filing with the US Securities and Exchange Commission (SEC) indicates a strategic shift for Circle, although the specifics of the share offering and the proposed price range remain undisclosed as per the confidential nature of the filing.

The IPO is set to occur subsequent to the completion of the SEC’s review process, contingent on prevailing market conditions. Notably, the company’s valuation was pegged at approximately $9 billion in a 2022 deal aimed at going public via a special-purpose acquisition company (SPAC). However, the company retracted from this agreement in December 2022.

CEO Jeremy Allaire expressed disappointment at the time, stating, “We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”

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USDC stands as the second-largest stablecoin in the market, with a capitalization of around $25 billion, trailing only Tether, which boasts a market cap of about $94.7 billion. The volume of USDC in circulation, currently at approximately $25.2 billion, has seen a reduction from its mid-2022 peak of over $56 billion, after USDC depegged in mid-March 2023.

In response to these market dynamics, Circle announced layoffs in July 2023 and a strategic withdrawal from non-core business areas. These actions underscore the company’s focus on consolidating its position in the stablecoin market. Further fortifying its commitment, Coinbase, a major player in the crypto exchange domain, took a stake in Circle in August, cementing a long-term commitment to the success of USDC.

The timing of Circle’s IPO filing is noteworthy, coming a day after the SEC approved a series of spot bitcoin ETFs, a decision that could have broader implications for the digital asset industry. Circle’s previous public listing plans, though undeterred by the latest SEC actions, reflect a cautious yet optimistic approach towards further integrating cryptocurrency operations within mainstream financial systems.

At press time, the entire crypto market saw a strong uptrend on the first trading day of the spot Bitcoin ETFs. BTC traded at $48.914, up 8.6% in the last 24 hours.

BTC climbs above $48,000, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from CryptoMeter, chart from TradingView.com



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