USDC Issuer Circle Is Preparing To Go Public

Circle Internet Financial, commonly known simply as Circle, is reportedly preparing to go public by organizing an Initial Public Offering (IPO). This is the company that created and issued the crypto industry’s second-largest stablecoin, USD Coin (USDC).

Now, however, it has reportedly enlisted several top financial institutions, such as Citi and JPMorgan Chase to help out with setting up the IPO.

According to anonymous inside sources, Circle’s plan is to file its IPO paperwork publicly by the end of April, and it is targeting a valuation between $4 billion and $5 billion. This would be a significant milestone for the company, which already attempted to enter the public markets before through a merger with a special-purpose acquisition company (SPAC).

This was in July 2021, when the firs said that it plans a merger with Concord Acquisition Corp, valuing the company at $4.5 billion — a similar figure to what Circle is after right now. But, this valuation was later revised to $9 billion, which happened before the deal was made.

Eventually, the entire deal was scrapped by the end of 2022, as the market conditions were deemed unfavorable, and regulatory scrutiny against crypto firms was on the rise under the Biden administration. With Circle now ready to make another attempt, it seems that the company is optimistic about its own financial strength, the market sentiment, and the general situation in the crypto industry.

Circle’s IPO Might Face Difficulties Due To Regulatory Scrutiny

If it goes through with it, Circle’s IPO is likely to be one of the most important public listings since Coinbase, which went public in April 2021. Given the fact that Circle is woring with JPMorgan and Citi, many have taken this as a signal that the firm is committed to securing a strong foothold in traditional finance.

Both banks were also present during Coinbase’s IPO, playing a pivotal role during that event, as well. At the time, Coinbase managed to reach a valuation of almost $86 billion. But, it is worth noting that while the US SEC is no longer targeting crypto companies in the same way as it did under Biden and Gary Gensler’s leadership, this is still not the best time for stablecoins.

Both the SEC and other regulatory bodies are increasing their regulatory oversight of digital currencies, meaning that compliance will be a key challenge for any firm operating in the crypto space. In other words, Circle’s ability to navigate the current and future regulatory landscape will be its key to success.