Circle, the issuer of the popular USDC stablecoin, is reportedly considering an initial public offering (IPO) in early 2024, as reported by Bloomberg on November 7. People familiar with the matter disclosed that Circle has been discussing this potential move with its advisers, although it remains uncertain if these discussions will ultimately lead to a public listing. The stablecoin issuer's strategic vision has long included the goal of becoming a U.S. public company, but the company remained tight-lipped about the specifics when questioned about the report, stating, "We do not comment on rumors."
In July 2021, Circle initially agreed to merge with Concord Acquisition for $4.5 billion. However, the merger deal fell through at a later stage. Circle's valuation reached $9 billion in February 2022 when the company revised its merger agreement with Concord. Nonetheless, USDC's market capitalization has experienced a notable decline, dropping by 56% from its peak of $55.9 billion in June 2022 to $24.6 billion as of the report.
Circle's major investors include prominent financial services firms like BlackRock, Fidelity Management, Goldman Sachs, General Catalyst Partners, and Marshall Wace. In March 2022, USDC briefly moved away from its peg to the U.S. dollar due to its $3.3 billion exposure to the now-defunct Silicon Valley Bank. During this period, the price of USDC dipped to $0.87 on March 11 but quickly rebounded to $1 by March 14.
An IPO for Circle would mark the first time the now-private company offers shares to the public. This move comes amid increasing interest and activity in the cryptocurrency and digital asset space, and the stablecoin issuer aims to leverage its position in this growing market.
