Posted: Jan 11, 2024 10:50 AM Updated: Jan 11, 2024 10:50 AM
Correction and fact check date: January 11, 2024, 10:50 AM
briefly
Circle has secretly filed for a U.S. IPO, outlining its intention to become a publicly traded company.
The company behind the USDC stablecoin — Circle Internet Financial has confidentially filed documents for its U.S. initial public offering (IPO), outlining its intention to become a publicly traded company. This IPO is expected to take place after the U.S. Securities and Exchange Commission (SEC) review process is completed and market considerations are made.
Boston-based Circle oversees the issuance and governance of USDC, a cryptocurrency pegged to the U.S. dollar.
The company previously proposed a valuation of $9 billion in a 2022 deal to go public through a special purpose acquisition company, closing that deal in December 2022. Despite the proposed transaction timeout, Circle still plans to proceed with the listing.
USDC is recognized as the second largest stablecoin after Tether. According to CoinGecko, it is the 7th largest cryptocurrency among all cryptocurrencies. USDC tokens are backed by cash and cash equivalents, including short-term government bonds. There are currently approximately $25 billion worth of USDC tokens in circulation.
Despite challenges, Circle begins public trading
Circle’s decision to become a public company coincides with a prolonged decline in trading due to high interest rates and market volatility.
Last year, Circle announced layoffs and disclosed a halt in investments in non-core business areas in response to a slump in the cryptocurrency sector in 2022. This downturn has resulted in the collapse of prominent cryptocurrency companies, a decline in token prices, and an increase in investors. Caution is needed within the industry.
Recently, Phoenix Technology, a cryptocurrency mining hardware retailer and mining facility operator, launched its IPO and listed on the Abu Dhabi Stock Exchange (ADX). Since the announcement, the six-year-old company’s market capitalization has reached $3.3 billion.
If Circle sees the success of its application, it could pave the way for several other cryptocurrencies to consider pursuing their own listings.
The company’s filing of IPO documents therefore marks a historic moment in the stablecoin landscape and sets a potential precedent among other stablecoin issuers.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles