The company refrained from disclosing specific details such as the number of shares to be offered or the proposed price range in the IPO filing. Headquartered in the US, Circle holds authority over the issuance and governance of USDC, a cryptocurrency pegged to the US dollar. The IPO is anticipated to occur subsequent to the completion of the Securities and Exchange Commission's review process, contingent on market conditions and other factors, according to the company's statement cited by Reuters.
In a previous disclosure, Circle had asserted a valuation of USD 9 billion in a 2022 plan to go public through a special-purpose acquisition company, a deal that was terminated in December 2022. Despite the setback, Circle's CEO expressed disappointment over the transaction's expiration but affirmed the company's commitment to proceed with the initial public offering.
Circle's decision to go public aligns with broader industry trends, coinciding with a slowdown in dealmaking in the context of heightened interest rates and market volatility.
Reuters cited data from cryptocurrency market tracker CoinGecko and reported that USDC ranks as the second-largest stablecoin, following Tether, and holds the seventh position among all cryptocurrencies. The tokens are collateralised by cash and cash equivalents, including short-term Treasury bonds. The circulating supply of USDC tokens stands at around USD 25 billion, witnessing a decline from its peak above USD 56 billion in mid-2022, as reported by the same source.
The cryptocurrency industry experienced a downturn in 2022, marked by decreasing token prices and investor caution, leading to the collapse of several prominent crypto firms, such as the FTX crypto exchange. In response to market conditions, Circle announced layoffs in July 2023 and ceased investments in non-core business areas.
In December 2023, Circle announced its conditional registration as a Digital Asset Service Provider (DASP) with the French Financial Markets Authority (AMF). However, to commence operations in France, Circle must fulfil conditions tied to its registration, requiring approval as a payment services provider (PSP) or registration as an agent of a PSP. The company has applied for an Electronic Money Institution license to meet this requirement.
Nubank has partnered with Circle to increase access to the Digital Dollar in Brazil. Initially, USDC support was introduced through Nubank Cripto, allowing Brazilian users to purchase and hold digital dollars. Subsequent integration with Nubank's extensive digital banking platforms aims to offer customers the advantages of blockchain-driven financial services facilitated by USDC.
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