Circle Internet Financial, the company responsible for the popular stablecoin USDC, announced on Thursday that it has confidentially filed for a U.S. initial public offering (IPO), marking a significant step towards becoming a publicly-traded entity.
However, specific details about the number of shares to be offered and the proposed price range have not yet been disclosed.
Headquartered in Boston, Circle is the entity that manages the issuance and governance of USDC, a cryptocurrency firmly anchored to the value of the U.S. dollar.
The IPO is contingent upon the completion of the Securities and Exchange Commission’s (SEC) review process, subject to market conditions and other relevant factors, as stated by the company.
Notably, Circle had previously announced a valuation of $9 billion as part of a 2022 deal to go public through a special-purpose acquisition company (SPAC).
However, this arrangement was terminated in December 2022. Jeremy Allaire, Circle’s CEO, expressed disappointment over the deal’s expiration but reaffirmed the company’s commitment to achieving a public listing.
USDC holds the distinction of being the second-largest stablecoin, trailing only Tether, and ranks as the seventh-largest cryptocurrency overall, according to CoinGecko, a cryptocurrency market tracking platform.
These tokens are backed by a reserve of cash and cash equivalents, including short-term Treasury bonds. While USDC’s circulation peaked above $56 billion in mid-2022, its supply has since decreased to approximately $25 billion, per CoinGecko data.
The cryptocurrency industry experienced a significant downturn in 2022, with token prices declining as investor caution grew amid the collapse of several high-profile crypto firms, including the FTX cryptocurrency exchange.
In response to these challenges, Circle announced workforce reductions in July 2023 and halted investments in non-core business areas.
Circle’s decision to pursue a public listing aligns with a broader trend of companies seeking to go public amid challenging market conditions characterized by high interest rates and market volatility.
Other firms, such as clearing firm Apex Fintech and Apollo-owned Aspen Insurance, have also confidentially filed for U.S. IPOs, demonstrating the resilience and adaptability of the financial sector in response to evolving market dynamics.