According to a recent Bloomberg report, Circle Internet Financial Ltd., the stablecoin issuer, is considering an IPO in the coming year.
Per the media report and citing anonymous sources, discussions with advisors were ongoing.
The company will be the first stablecoin issuer to go public if the reports are confirmed.
A representative said, “Becoming a US-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors.”
With a market capitalization of over $24 billion, Circle had previously attempted to go public via the Special Purpose Acquisition Company (SPAC) route in 2022. The Concord Acquisition merger plans led by Bob Diamond, the ex-CEO of Barclays, fell apart. Its valuation at the time hit $9 billion. Current valuation plans remain unclear in the event of an IPO.
Big Guns Back Circle
Circle’s list of backers features finance heavyweights.
Investors from 4 funding rounds worth $950 million include BlackRock, Fidelity Management, Goldman Sachs, and Marshall Wace.
The last round occurred on August 22, 2023, and included the acquisition of a minority stake by Coinbase, the cryptocurrency exchange. It also revealed $3.3 billion worth of exposure to Silicon Valley Bank following its failure and briefly lost its 1:1 peg with the dollar earlier in the year.
The company purchased a 0.05% stake in FTX in 2021. The company has also been at the forefront of the crypto regulation debate.
Its USDC token faced stiff competition from the USDT (backed by Tether), and its market capitalization dropped by $300 million briefly last week within 24 hours. Circle also announced layoffs in noncore business units in July and obtained a payment license from the Monetary Authority of Singapore (MAS).
Stablecoin Usage is Rising
The numbers in a recent AllNodes report put stablecoins ahead of the digital asset pack with 337,000 daily active wallets. The rising figures show increased liquidity and utility.
One of these innovations is the “Gas Station” function unveiled by Circle, which allows merchants to pay transaction fees within its programmable wallet ecosystem.
Efforts to drive further adoption face stiff opposition from the U.S. government, which is still trying to define the boundaries for a digital asset regulatory framework.
Jeremy Allaire, CEO of Circe, noted in a video on the “X” social media platform, “In today’s global economy, the dollar’s position of strength is under threat.”
Allaire also noted in an interview with Laura Shin on the Unchained podcast that the “Clarity for Payment Stablecoins Act” might not get inked into law because of several roadblocks, including the supervisory status of the Federal Reserve.
He said, “It’s kind of technocratic, but it is actually really important stuff that has to do with state rights and federal rights and the balance of power.”
One key issue that prevents stablecoins from taking center stage in America.