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Sunday, April 14, 2024

USDC Issuer Circle Files for US IPO

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Circle Internet Financial, the entity behind the stablecoin USDC, revealed 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.

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