USDC Issuer Circle Eyes $5B IPO by April End

USDC issuer Circle has re-ignited interest in pursuing its initial public offering (IPO). A Monday report revealed that the stablecoin issuer expects to go public in late April, pending regulatory approval.

Notably, Circle filed confidential paperwork with the US Securities and Exchange Commission (SEC) in January 2024. With the regulatory tides easing, the crypto firm expects a breakthrough this time after an unsuccessful outing in 2021.

Meanwhile, the prominent crypto firm eyes a $4 to $5 billion valuation for its share listing. Notably, its stablecoin USDC ranks as the second-largest stablecoin by market cap and seventh in the broader crypto ranking, with a valuation of $60 billion.

Circle to Partner Investment Banks 

According to the Fortune report, citing two anonymous “familiar sources,” investment banks JP Morgan Chase and Citigroup Inc. will work with Circle on its highly anticipated IPO. Notably, neither JP Morgan nor Citigroup had confirmed the claims at the time of writing.

Furthermore, the exact timing of the IPO remains undisclosed. However, the sources disclosed that Circle will file its prospectus with the SEC in April, with the launch expected in June in a worst-case scenario.

Circle’s latest move aligns with its strategic goal of positioning itself as a key player in the future of finance amid growing stablecoin competition. It also trails the stablecoin issuer’s emergence as Japan’s first approved USD-pegged stablecoin, boosting global adoption.

From SPAC Setback to IPO Success?

The latest move marks Circle’s second attempt to secure an IPO. Notably, the company’s initial effort in 2021 through a SPAC merger was unsuccessful due to regulatory issues.

Circle’s SPAC deal fell through in December 2022 amid the collapse of cryptocurrency exchange FTX and a broader downturn in the digital asset market. Undeterred, the company filed confidentially with the Securities and Exchange Commission (SEC) for a traditional initial public offering (IPO) in January 2024.

If successful, Circle’s IPO would be the largest cryptocurrency-related listing since Coinbase’s listing in 2021. The company has secured over a billion in funding from prominent investors, including BlackRock and Coinbase.

Circle relocated its headquarters to New York in September 2024 following its push to capture the American market. Founded in 2013 by Jeremy Allaire and Sean Neville, Circle has evolved from payments and crypto trading to focus on stablecoins.  Meanwhile, its IPO timing appears favorable, following the recent shift in regulatory sentiments and MiCA regulations, amid securing its first EU license.

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