The crypto company behind the widely used USDC stablecoin, Circle Internet Financial, is contemplating an initial public offering (IPO) in early 2024.
Bloomberg disclosed this development in a recent report, citing sources privy to the matter.
Circle IPO Talks and Valuation
According to the report, Circle is currently discussing with advisory bodies as it lays the groundwork for a possible IPO. Meanwhile, Bloomberg noted that Circle had not finalized its decision for a public listing, per comments from insiders who pled anonymity.
On the other hand, a Circle spokesperson underscored the company’s longstanding goal to become a publicly traded entity in the United States. Yet, the USDC representative declined to comment directly on the speculation about the IPO plan, per the report.
Also, the uncertainty extends to the potential valuation Circle might seek through an IPO. However, the report highlighted that the USDC issuer was previously appraised at $9 billion. This was during a 2022 attempt to merge with a special purpose acquisition company (SPAC), Concord Acquisition Corp.
In particular, Bloomberg mentioned that Circle terminated a deal to go public last year through a merger with Concord Acquisition Corp. Besides, the report stated that in a 2022 investment round, Circle was valued at $7.7 billion.
On the other hand, the report highlighted Circle’s significant financial backing. It noted the firm secured investments from big names such as BlackRock Inc., General Catalyst Partners, Fidelity Management and Research LLC, Goldman Sachs Group Inc., and Marshall Wace LLP.
Notably, USDC is the second most prominent stablecoin in the crypto market, with a valuation exceeding $24 billion. USDC suffered a hiccup earlier this year when Cirlce disclosed a $3.3 billion exposure to the failed Silicon Valley Bank. In particular, USDC momentarily lost its $1 peg but regained it after a few days.
Ripple IPO
It is worth mentioning that Circle is not the only crypto company with behind-the-scene plans for an IPO. The Crypto Basic has reported that the San Francisco-based blockchain payment firm Ripple is silently preparing the ground for an IPO.
Meanwhile, experts have argued a Ripple IPO may not materialize soon due to Ripple’s regulatory issues with the SEC.