In a significant move that underscores the growing intersection of traditional finance and cryptocurrency, Circle Internet Financial, the company behind the widely used USD Coin (USDC) stablecoin, has filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). This development marks Circle’s second attempt to enter the public markets, following a previous failed merger with a special purpose acquisition company (SPAC) in 2021.
Circle, which operates one of the largest stablecoin networks globally, aims to raise capital through its IPO, with a valuation target between $4 billion and $5 billion. The company has hired investment banks JPMorgan Chase and Citi as lead underwriters for the offering. The IPO is expected to proceed after the SEC completes its review, subject to market conditions.
Founded in 2013, Circle has become a significant player in the cryptocurrency space, primarily known as the issuer of USD Coin (USDC), a stablecoin pegged to the U.S. dollar. USDC has a market capitalization exceeding $25 billion, making it the second-largest stablecoin by supply. Circle’s decision to pursue a traditional IPO reflects a strategic shift towards greater transparency and credibility, particularly in a regulatory environment that has become increasingly stringent for digital assets.
Circle’s business model revolves around the issuance and governance of USDC, which allows for stable value transactions in the volatile cryptocurrency market. The company’s revenue is heavily dependent on stablecoin reserves, and it has reported over $1.6 billion in revenue for 2024. Circle’s investor base includes prominent entities like Goldman Sachs, General Catalyst Partners, BlackRock, and Fidelity Management and Research LLC.
This IPO is poised to be one of the most significant cryptocurrency-related listings since Coinbase’s direct listing in 2021. As Circle navigates the complex regulatory landscape, its success could pave the way for other crypto companies to follow suit, potentially reshaping the financial sector’s approach to digital currencies.
