USDC Stablecoin Issuer's IPO: What to Know
Circle Internet Financial, the company behind the USDC stablecoin, has confidentially filed for a U.S. initial public offering (IPO) to become a publicly-traded company. The move comes after a slump in the crypto industry in 2022, leading to a decrease in USDC tokens in circulation and the collapse of high-profile crypto firms. The IPO filing is confidential, and the specific number of shares to be sold or the proposed price range has not been disclosed. The company’s IPO is expected to happen after the SEC’s review process, subject to market conditions.
Circle controls the issuance and governance of USDC, the second-largest stablecoin, pegged to the U.S. dollar. USDC tokens are backed by cash and cash equivalents, including short-term Treasury bonds. The company’s IPO filing is significant, as it reflects the ongoing trend of crypto companies eyeing public offerings. This move by Circle also aims to enhance trust and transparency, considering the challenges faced by the industry in recent times.
The crypto industry experienced a slump in 2022, leading to a decrease in USDC tokens in circulation and the collapse of high-profile crypto firms. Despite these challenges, Circle’s IPO filing comes at a time when crypto prices have been on an uptick and an 18-month crypto winter has ended. The timing of Circle’s IPO plan announcement is notable, particularly given the recent approval of 11 spot bitcoin exchange-traded funds by the SEC. This indicates a potential shift in the regulatory environment and market sentiment, which could impact the success of Circle’s IPO.
Circle Internet Financial Ltd. had previously attempted to go public in late 2022 with an estimated valuation of $9 billion. However, the company scrapped a bid to list its shares via a blank-check deal. The stablecoin provider filed a draft registration statement with the US SEC, with the number of shares and a price range to be determined later. The IPO is expected to proceed after the SEC completes its review process, reflecting the ongoing trend of crypto companies eyeing public offerings. Investors in Circle include Goldman Sachs Group Inc., General Catalyst Partners, BlackRock Inc., Fidelity Management and Research LLC, and Marshall Wace LLP.
The issuer of the USDC stablecoin, Circle Internet Financial, filed to sell shares to the public for the first time. USDC is the second-largest stablecoin, with a market cap of about $25 billion. Circle planned to go public via a special purpose acquisition company (SPAC) deal in 2021, but it fell through after not completing the SEC’s “qualification in time.” The initial public offering of Circle is expected to take place after the SEC completes its review process. The move to become a publicly listed company comes after the SEC approved a series of spot bitcoin ETFs. This indicates a potential shift in the regulatory environment and market sentiment, which could impact the success of Circle’s IPO.
Circle Internet Financial has filed confidentially for an IPO of the popular USD Coin stablecoin. The number of shares to be offered and the anticipated pricing range have not been disclosed. Circle previously attempted to go public in 2022 through a merger with a special purpose acquisition company but terminated the deal in December. USD Coin (USDC) has grown to become the second-largest stablecoin with a circulation of around $25 billion in tokens. The IPO is expected to be completed after the SEC finishes reviewing Circle’s filings, subject to market conditions at the time.
In conclusion, Circle’s confidential filing for an IPO reflects the company’s strategic move to navigate the changing landscape of the crypto industry. The IPO filing comes at a pivotal time, following a challenging period for the industry and amidst improving market sentiment. As the SEC reviews Circle’s filings, the outcome of this IPO could potentially influence the future of stablecoin regulation and the broader crypto market. With USDC’s significant presence and market cap, the IPO could mark a turning point in the journey of crypto companies transitioning into publicly-traded entities.