Stablecoin Issuing Circle Considering 2024 Public Launch: Report
The USD Coin (USDC) Issuing Circle is considering an initial public offering (IPO) in early 2024, Bloomberg reports.
A Nov. 7 Bloomberg report cited people with knowledge of the matter saying the stablecoin issuer is in talks with its advisers about the move, but the discussions will no doubt result in a public record.
Circle had agreed to go public in a $4.5 billion merger with Concorde Acquisition in July 2021, but that deal fell through.
A Circle representative told Bloomberg: “Becoming a US-listed public company has long been part of Circle's strategic ambitions.
A tight lip stays on the round details. The representatives added: “We do not comment on rumours.
A potential IPO would see the now privately owned club publicly offer shares for the first time.
Related: Moody's Unveils Service That Uses AI to Predict Stablecoin Downgrades
Circle was valued at $9 billion in February 2022 after the company amended its merger agreement with Concorde. However, USDC market size fell 56% to $24.6 billion in June 2022 from $55.9 billion.
Our Chief Economist @gordonliao and his co-authors were honored at #DFintechWeek for their research showing that the use of stablecoins for speculative crypto trading has declined by 90% since 2019. More evidence that the $USDC's heyday is here. Glory! https://t.co/XTjxc4Sdjr
— Circle (@circle) November 7, 2023
Circle has received investments from financial services firms BlackRock, Fidelity Management, Goldman Sachs, General Catalyst Partners and Marshall Islands.
The USDC was pegged to the US dollar in March due to its $3.3 billion exposure to the now-collapsed Silicon Valley bank. According to CoinGecko, it fell as low as $0.87 on March 11 before returning to $1 on March 14.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
