Circle Internet Financial, the organization behind USDC, is making significant strides toward its long-awaited initial public offering.
The fintech firm has enlisted the services of investment banks JPMorgan Chase and Citi to assist in orchestrating the offering, according to sources close to the situation.
An official IPO filing is anticipated in late April, although the precise timeline remains unclear. Following the filing, trading of shares could commence within weeks, but the regulatory approval process may prolong this timeframe.
Circle’s IPO is poised to be the most notable public offering in the cryptocurrency industry since Coinbase’s direct listing in 2021, where JPMorgan and Citi also acted as advisors.
Circle’s IPO on the Horizon
Circle has made past attempts to go public. In 2021, the company pursued a SPAC merger, a once-prominent pathway to the public markets, but regulatory setbacks from the Securities and Exchange Commission derailed the effort.
The merger was ultimately scrapped in late 2022 amid the fallout from the collapse of crypto exchange FTX and a wider slump in digital assets. In January 2024, Circle discreetly filed for a conventional IPO.
The forthcoming public filing will give the first comprehensive view of Circle’s financial situation and its intended ticker symbol.
Founded in 2013 by Jeremy Allaire and Sean Neville, Circle originally concentrated on payments and cryptocurrency trading before shifting its focus to stablecoins in 2018. Its flagship product, USDC, was initially overseen by a consortium that included Coinbase. The partnership evolved, with Coinbase generating significant revenue from USDC, reportedly reaching $225.9 million in Q4 2024.
USDC’s market capitalization skyrocketed from under $1 billion in 2020 to more than $50 billion in 2022, propelled by its integration in decentralized finance and trading. However, Circle experienced challenges, including a liquidity scare in 2023 when $3.3 billion of its reserves were locked at Silicon Valley Bank.
While USDC managed to regain its $1 peg, its market cap fell to below $25 billion before recovering to approximately $60 billion today.
Stablecoin Competition
Despite its leading position, Circle faces competition from major financial players like PayPal and Fidelity, which are entering the stablecoin arena. Additionally, regulatory changes could influence its business strategy.
Legislation concerning stablecoins is progressing through Congress, with the Senate Banking Committee approving a bill in March and a House vote expected in April.
Former President Donald Trump has expressed support for stablecoin regulations, aiming to finalize a bill by August.
With its second attempt at an IPO, Circle hopes to leverage improving market trends and clearer regulations to solidify its status as a publicly traded company.