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USDC Issuer Circle Files for US IPO

USDC Issuer Circle Files for US IPO

Circle Internet Financial, the entity behind the stablecoin USDC, announced on Thursday that it has confidentially submitted documents for a U.S. initial public offering (IPO) with the aim of transitioning into a publicly traded company.

The specifics of the IPO, such as the number of shares to be offered and the proposed price range, were not disclosed in the filing.

  • The IPO is anticipated to proceed once the Securities and Exchange Commission (SEC) completes its review process, contingent upon market conditions and other factors, as stated by the company.
  • Circle had previously asserted a valuation of $9 billion in a 2022 deal to go public through a special-purpose acquisition company, which was terminated in December 2022.
  • After the setback, Circle CEO Jeremy Allaire expressed disappointment and affirmed the company’s continued intention to go public.
  • Headquartered in Boston, Circle oversees the issuance and governance of USDC, a stablecoin pegged to the U.S. dollar.
  • USDC ranks as the second-largest stablecoin, following Tether, and holds the seventh position among all cryptocurrencies in terms of market cap, according to CoinGecko. As per the data, there are approximately $25 billion worth of USDC tokens in circulation, down from a peak above $56 billion in mid-2022.
  • The crypto industry faced a downturn in 2022, marked by a decline in token prices and heightened investor caution, leading to the collapse of various prominent crypto firms, including FTX.
  • Circle, responding to the industry challenges, announced layoffs in July 2023 and ceased investments in non-core business areas.
  • The decision to go public comes amid a broader trend of reduced deal activity in the crypto sector due to elevated interest rates and market volatility.
  • Notably, other entities like clearing firm Apex Fintech and Apollo-owned Aspen Insurance have also confidentially filed for U.S. IPOs, with the latter considering a public offering in 2024.