The company behind the widely-used USDC stablecoin, Circle, or Circle Internet Financial is considering going public by early 2024. This decision comes after the company’s valuation reached $9 billion during a previous attempt at an IPO in 2022. Although these plans are still in ...
The company behind the widely-used USDC stablecoin, Circle, or Circle Internet Financial is considering going public by early 2024. This decision comes after the company’s valuation reached $9 billion during a previous attempt at an IPO in 2022.
Although these plans are still in their preliminary stages, they underscore the stablecoin issuer’s long-term vision of becoming a public company in the US.
Becoming a US-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors
Circle representative.The
company’s decision signals a shift in its strategy. Talks about an IPO come just after Circle terminated a merger agreement with Concord Acquisition. Circle looks confident to go for an IPOCircle is financially backed by influential investors like Goldman Sachs, General Catalyst Partners, BlackRock, Fidelity, and Marshall Wace. They raised around $7.7 billion in a 2022 funding round.
Circle plays a very important role in the crypto sector as the issuer of the USDC. It facilitates the global transfer of digital assets on a large scale. They recently hired a former Goldman Sachs executive to enhance their risk management measures.
The move towards an IPO is also accompanied by a commitment to transparency. The company intends to regularly publish financial reports and appoint Deloitte as its auditor.
U.S. still lacks stablecoin regulations
Circle’s path to an becoming a U.S. listed company may not be without its challenges. The regulatory environment surrounding stablecoins in the United States is becoming increasingly complex.
Federal Reserve Vice Chair for Supervision, Michael Barr, recently called for regulatory oversight of stablecoin issuers. He emphasized the need for supervision by the U.S. central bank and urged the Congress to come up with a set of regulations as soon as possible.
This follows concerns about the unregulated entry funds into private digital tokens pegged to fiat currencies. Basically, money laundering.
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