USDC Stablecoin Issuer Circle Files for US IPO

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Published: January 11, 2024 at 10:50 am Updated: January 11, 2024 at 10:50 am

Edited and fact-checked:
January 11, 2024 at 10:50 am

In Brief

Circle confidentially filed for a United States IPO, outlining its intentions to transition into a publicly-traded entity.

Company behind the USDC stablecoin — Circle Internet Financial confidentially submitted documentation for a United States initial public offering (IPO), outlining its intentions to transition into a publicly-traded entity. The IPO is anticipated to take place subsequent to the conclusion of the Securities and Exchange Commission (SEC) review process and pending market considerations.

Headquartered in Boston, Circle oversees the issuance and governance of USDC–a cryptocurrency pegged to the US dollar.

The company, previously stating a valuation of $9 billion in a 2022 deal to go public through a special-purpose acquisition company, concluded that deal in December 2022. Despite the proposed transaction timing out, Circle still intends to proceed with going public.

USDC is recognized as the second-largest stablecoin, following Tether. According to CoinGecko, it ranks as the seventh-largest cryptocurrency overall. USDC tokens are supported by cash and cash equivalents, encompassing short-term Treasury bonds. Currently, approximately $25 billion worth of USDC tokens are currently in circulation.

Despite Challenges Circle Initiates Move to Publicly Trade

Circle’s decision to transition into a publicly-traded company coincides with a prolonged period of reduced dealmaking influenced by high interest rates and market volatility.

Last year, Circle declared layoffs and disclosed the cessation of investments in non-core business areas as a response to the cryptocurrency sector’s downturn in 2022. This downturn witnessed the collapse of high-profile crypto firms, a decline in token prices, and increased investor caution within the industry.

Recently, Phoenix Technology, a cryptocurrency mining hardware retailer and mining facility operator, launched its IPO and listed on the Abu Dhabi Securities Exchange (ADX). Subsequent to the announcement, the six-year-old company’s market capitalization reached $3.3 billion.

If Circle witnesses success with the application, it might pave the way for several other cryptocurrencies to consider pursuing their own listings.

Thus, the company’s submission of IPO documents marks a historic moment in the stablecoin landscape, setting a potential precedent among other stablecoin issuers.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson